SAE Foundation Annual Report 2012 - 47

SAE FOUNDATION
Notes to the Financial Statements (Continued)
Note 1 - Summary of Significant Accounting Policies (Continued)
I.

Revenue Recognition

Revenue is recognized when earned. Revenues received in advance of the year to
which they relate are deferred. Contributions received are recorded as unrestricted,
temporarily restricted, or permanently restricted support, depending on the existence or
nature of any donor restrictions.
Support that is restricted by the donor is reported as an increase in temporarily or
permanently restricted net assets, depending on the nature of the restriction. When a
restriction expires (that is, when a stipulated time restriction ends or purpose restriction is
accomplished), temporarily restricted net assets are reclassified to unrestricted net assets
and reported in the statement of activities as net assets released from restrictions.
J.

In-kind Donations

Donated materials and services meeting the requirements of accounting principles
generally accepted in the United States of America are reflected as contributions at their
estimated values at the date of receipt.
A substantial number of SAE members have made significant contributions of their time
to the Foundation’s various programs. The value of this contributed time is not reflected in
the accompanying financial statements since it does not meet the criteria for recognition
under accounting principles generally accepted in the United States of America.
K.

Fair Value Measurements

The Foundation defines fair value as the price that would be received from selling an
asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. When determining the fair value measurements for assets and
liabilities, which are required to be recorded at fair value, the Foundation considers the
principal or most advantageous market in which the Foundation would transact and the
market-based risk measurements or assumptions that market participants would use in
pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk.

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SAE Foundation Annual Report 2012

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