For which of the following types of nonexchange transactions are revenues recognized when all the eligibility requirements are met?

• A. Voluntary nonexchange transactions.
• B. Imposed nonexchange transactions.
• C. Derived tax revenues.
• D. Exchange transactions.

Answer: (A)

In this area, when accounting for nonexchange transactions, the timing of revenue recognition depends on the type of transaction and any conditions attached. For Voluntary nonexchange transactions, revenue is recognized only after all eligibility requirements—such as time and purpose restrictions set by the provider—have been met and the recipient is entitled to the resources. Until those conditions are satisfied, the government defers recognizing the revenue (often recording a receivable or restricted grant). This differs from other nonexchange types where recognition hinges on measurability and availability (imposed nonexchange revenues), or on when the underlying tax is collected (derived tax revenues), or from exchange transactions where revenue is recognized at the point of the actual exchange. Therefore, the statement about recognizing revenue when all eligibility requirements are met best fits Voluntary nonexchange transactions.