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In-Kind Services

I thought it appropriate that I comment on the thread that has been
circulating on the -bb regarding the "In-Kind Services".
Just to set the record straight: The inclusion of In-Kind Services on our
operating statement does not effect the bottom line at all. All those valued
services are posted as "credits" to the Income side of the statement and an
equal and offsetting "debit" amount is either posted to an Expense account
or capitalized on the Balance Sheet and then expensed on the expense side of
the operating statement.. With other words, the transaction is a wash...
The purpose of the In-Kind tabulations and inclusions is to illustrate to
outsiders, and members, the amount of work that is being donated to AMSAT in
the course of executing our Program of Work. It gives a better overall
picture of the scope of our endeavor.
This practice is perfectively acceptable under "Generally Accepted
Accounting Practice" and is often done by many organizations. 
Gunther Meisse
AMSAT Treasurer
Sent via amsat-bb@amsat.org. Opinions expressed are those of the author.
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