Indian Gaming Association Notes to Financial Statements Note 1: Summary of Significant Accounting Policies (Continued) Accounts Receivable and Allowance for Credit Losses
Accounts receivable and contract assets are recorded at the original invoice or earned amount. Effective January 1, 2025, IGA early adopted ASU 2025-05, which provides a practical expedient for estimating credit losses on short-term trade receivables. Under this expedient, IGA assumes that current economic conditions at the statement of financial position date will persist through the remaining life of the receivables, eliminating the need for separate macroeconomic forecasting. As a nonprofit organization, IGA has also elected an accounting policy to consider subsequent cash collections received after the balance sheet date through the date the financial statements are available to be issued (the "evaluation date") when determining the allowance. IGA generally expects collection within 30 days following its annual trade show and conferences. If an account remains uncollected after 30 days, it is evaluated for immediate write-off or referred to a collection agency, based on specific circumstances. Accounts referred to collections are typically written off if they remains unpaid after 60 days. Contributions Receivable Unconditional promises to give that are expected to be collected within a year are recorded at net realizable value. Unconditional promises to give that are expected to be collected in future years are recorded at the present value of their estimated future cash flows. The discounts on those amounts are computed using risk-free interest rates applicable to the years in which the promises are received. Amortization of the discounts is included in contribution revenue. Inventories Inventories are stated at the lower of cost or market. Cost is determined on a standard cost basis that approximates the first-in, first-out (FIFO) method. Market is determined based on net realizable value. Inventories consist of amounts expended for production of a book on the history and benefits of Indian gaming and specially designed pendants. IGA plans to publish and sell copies of this book and the pendants in the near future.
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