10.25.2023 OMA Board Book

OBESITY MEDICINE ASSOCIATION Notes To Consolidated Financial Statements (Continued)

Equipment The Organizations capitalize all costs in excess of $1,000 for the purchase of furniture and equipment. Depreciation is provided over the estimated useful lives of the assets on a straight-line basis. Donated assets are recorded at their fair value at the date of the donation and depreciated over the estimated useful life of the asset. Revenue Recognition The Association receives dues throughout the year and recognizes revenues as the dues are earned. The Association also received revenues from education courses and seminars. The transaction price is allocated to each event and service sold and is the amount of consideration to which the Association expects to be entitled in exchange for transferring services to the customer. All revenue is recognized over the period of time in which the services are provided to the customer and each service represents a single performance obligation. Payments for goods and services received in advance of the performance of related obligation are recognized as deferred revenue. Contributions received by the Foundation are recorded as with or without donor restrictions, depending on the existence and/or nature of any donor restrictions. Contributions are recognized as accounts receivable and revenue when a donor makes an unconditional promise to give. Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, gains, losses and other changes in net assets during the reporting period. Actual results could differ from those estimates. Income Taxes The Association is exempt from federal income tax under Section 501(c)(6) of the Internal Revenue Code (IRC). However, income from certain activities not directly related to the Association’s tax-exempt purpose is subject to taxation as unrelated business income. Taxes on unrelated taxable business activities in 2022 are not material.

Page 10