A foundation promises to donate $1 million to a local public broad casting station (a not-for-prot organization)

Question:

A foundation promises to donate $1 million to a local public broad casting station (a not-for-proﬁt organization) in one year. When, and in what amount, should the station recognize revenue? The station applies a of 10 percent to all pledges. Would your response be the same if the foundation pledged to donate the funds only if and when the station agreed to carry a particular program? Why do many not-for-proﬁts object to the standards pertaining to revenue recognition of pledges?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...