Conditional Promise

A conditional promise to give is a transaction that depends on an occurrence of a future and uncertain event. Recognition does not occur until the conditions are substantially met (or when it can be determined that the chances of not meeting the conditions are remote) and the promise becomes unconditional. Good faith deposits that accompany a conditional promise are accounted for as a refundable advance in the liability section of the statement of financial position. See also contribution and unconditional promise.