SAE Foundation Annual Report 2014 - BDO12

SAE Foundation
Notes to the Financial Statements (Continued)

2. Summary of Significant Accounting Policies (Continued)
Furniture and Equipment
Furniture and equipment acquired is recorded at cost. Depreciation is provided by the straightline method over the estimated useful lives of the assets.
Maintenance and repairs which are not considered to extend the useful lives of assets are charged
to operations as incurred. Expenditures exceeding $5,000 for additions and improvements are
capitalized. Upon sale or retirement, the cost of assets and related allowances are removed from
the accounts and any resulting gains or losses are included in income (expense) for the year.
Revenue Recognition
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.
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 fair value 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.
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.

See accompanying independent auditor's report.
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SAE Foundation Annual Report 2014

Table of Contents for the Digital Edition of SAE Foundation Annual Report 2014