This portion of the book will provide a framework towards understanding the treatment of gifts on the income statement at Indiana University.

Gifts are donations received from the public. The gift could be from individuals or organizations. Gifts play a significant role in the revenue stream of many entities. While gifts may not require anything in return to receive the money, they may be earmarked for a specific purpose. Properly accounting for gifts on the incomes statement is important as it allows IU to appropriately track and report the revenue generated from these donations. Understanding gifts from an accounting perspective is crucial for IU to accurately assess their financial health, manage cash flow effectively, and comply with accounting standards.