[Verse 1] When donors give with strings attached, conditions they must meet The cash comes in but wait my friend, recognition's not complete External stipulations mean we cannot count it yet Deferred contribution method is the safest bet [Chorus] Defer it, don't fear it, when restrictions apply Revenue recognition has to wait its time Match it, don't snatch it, let the spending lead the way Deferred contribution method shows the proper way [Verse 2] Record the cash as asset first, the credit side's deferred A liability it sits until conditions are conferred When expenditures are made that match the donor's true intent Then revenue gets recognized for every dollar spent [Chorus] Defer it, don't fear it, when restrictions apply Revenue recognition has to wait its time Match it, don't snatch it, let the spending lead the way Deferred contribution method shows the proper way [Bridge] Capital assets need special care, amortize over useful life Research programs, equipment too, cut through the accounting strife Operating funds get recognized when qualifying costs are made But capital items spread the joy throughout their service days [Verse 3] Endowment funds are different still, principal stays intact Only investment income flows when spending is on track Check the stipulations close, make sure you understand Before you recognize revenue, follow donor's command [Chorus] Defer it, don't fear it, when restrictions apply Revenue recognition has to wait its time Match it, don't snatch it, let the spending lead the way Deferred contribution method shows the proper way [Outro] Cash received but not yet earned Deferred until conditions turned Revenue follows spending's lead That's the method CPAs need
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