2021-09-22 OMA Agenda - Board of Trustees

OBESITY MEDICINE ASSOCIATION Notes To Consolidated Financial Statements (Continued)

Investment return includes dividends, interest and other investment income, in addition to realized and unrealized gains and losses on investments. 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 market value at the date of the donation and depreciated over the estimated The Association receives dues throughout the year and recognizes revenues as the dues are earned. Dues paid in advance are recorded as deferred revenue. 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 at the point in time in which the services are provided to the customer and each service represents a single performance obligation. 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. Contributions received in advance of the performance of related obligation are recognized as deferred revenue. In-Kind Contributions And Contributed Services In-kind contributions are reflected as contributions at their fair value at the date of donation and are reported as unrestricted support unless explicit donor stipulations specify how donated assets must be used. The Organizations recognize the fair value of contributed services received if such services a) create or enhance nonfinancial assets or b) require specialized skills that are provided by individuals possessing those skills and would typically need to be purchased if not contributed. The Organizations receive services from volunteers who give their time to the Organizations’ support and fundraising campaigns, but which do not meet the criteria for financial statement recognition. useful life of the asset. Revenue Recognition

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