Conclusion: this clinical trial is considered an exchange transaction, as a corresponding value is exchanged for services. The pharmaceutical company retains all of the intellectual property, so it cannot be considered a contribution. There is a capital agreement between two parties that agree to merge cash, capital and other assets within the same company to carry out transactions. The capital is provided in exchange for a portion of the company`s equity. A capital agreement must include: Accounting standards codification (ASC) 958-605-15-5A are worded as follows: if a capital transfer is an exchange transaction in which a resource provided (. For example, a public body, a foundation, a capital corporation or another entity) receives reasonable value in return for the transferred resources or a contribution, the type of resource provider ignores the disposition and a company must consider the terms of an agreement: G. All rights of a contributor under this agreement and all other agreements, certificates and instruments that are otherwise provided under this contract. A contribution agreement should contain several sections, including: Accounting Standards Updates 2018-08 – Non-profit Entities (theme 958): clarification of the scope and accounting guide of contributions received and contributions are intended to clarify and assist companies in evaluating, whether transactions should be counted as contributions (non-reciprocal transactions) under sub-theme 958-605 – Not-for-Profit-Revenue Recognition , or as a (reciprocal) exchange of transactions that are accounted for in theme 606-Revenue of contracts with customers and (2) if a contribution is subject to conditions. Before ASC 958 – Not-for-Profit Entities, the University and the Academy of Natural Sciences classified all distinctions of the federal state, the federal states and municipalities as exchange transactions.

This was consistent with the guidelines and the higher education industry as a whole. The argument was based on the idea that governments were not contributing.