Unrestricted revenue in Fund Accounting

Revenues
In addition to public support, resources may be received from exchange transactions that are classified as unrestricted revenue. These resources would include the following accounts:

1. Membership Dues Revenue for dues charged members to join and use facilities or receive publications.
2. Program Services Fees for amounts charged clients for services of the organization, such as consulting, testing, or advising.
3. Sales of Publications and Supplies for proceeds from the sales of these items.

Investment transaction revenue, classified as unrestricted or restricted, could include the following accounts:
1. Investment Revenue for interest, dividends, and other earnings.
2. Realized Gain on Investment Transactions for gains from the sale or exchange of investments.
3. Net Increase (or Decrease) in Carrying Value of Investments for the unrealized appreciation (or depreciation) of investments if they are carried at fair value.

Each of the items of investment transactions revenue would be recorded as unrestricted or restricted depending on donor stipulations. Thus, the unrestricted revenue from an endowment would be recorded with a credit to Investment Revenue—Unrestricted. Restricted investment revenue is reported as temporarily or permanently restricted in compliance with the donor’s wishes.VHWOs are required to carry their investments at fair value. Cost includes not only the total cost of purchased investments but also the fair value at the date of receipt of donated investments. When a relatively permanent reduction in fair value occurs, the impairment to cost should be recorded. The unrealized appreciation (or depreciation) is shown separately in Net Increase (or Decrease) in Carrying Value of Investments. Realized and unrealized gains and losses on all investments are considered increases or decreases in unrestricted net assets unless restricted by donor or law.