This disclosure is not only disturbing for the Bhutanese people but also for all the donors internationally who expect the donated capital
to be put to good use meeting the laid out goals as well as the deadlines.
However, the term fair value has been used until now to describe an entry/buy price in the case of donated capital
assets and capital assets generated in connection with a service concession arrangement.
ANZ (NYSE: ANZ) has announced that it has donated capital
for flood relief operations in Jakarta.
Since 1993, ENMR*Plateau Telephone Cooperative (Clovis, N.M.) has capitalized on its state law that allows unclaimed capital credit checks and donated capital
credit checks to be rolled into a nonprofit educational foundation.
The cultural organization had to give back donated capital
funds when it canceled the Part Two expansion, and the television station came under intense public criticism of its operations when promises they had made in the late 1990s could no longer be fulfilled.
assets are shown at fair market value plus ancillary charges.
assets generally should be recorded and treated as another financing source when sold and should be directly recorded in the general fixed-asset account group upon receipt.
Other donated capital
assets are recorded only in the General Fixed Asset Account Group.
Finally, the ED proposes to distinguish fair value (a market-based exit price) from acquisition value (a market-based entry price) and use the latter for valuing donated capital
assets, donated works of art, historic treasures, and capital assets received in connection with service concession arrangements.
HSBC Holdings (LSE: HSBA) has announced that it has donated capital
Furthermore, the "gain" portion of the additional capital invested by minority shareholders can be likened to donated capital
. Certainly a city that donates an industrial site to a corporation is no more of an investor than minority shareholders, yet conventional practice treats the donation as additional paid-in capital.
GAAP require that donated capital
assets be recorded at their fair value as of the date of donation.