Discussion:Match Expenses and Revenue in Restricted Funds
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| Revision as of 18:49, 15 March 2007 Natalie (Talk | contribs) (Grants can be tr) ← Previous diff |
Revision as of 20:46, 18 March 2007 JCCPA (Talk | contribs) (Stacy - check ou) Next diff → |
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| {{ForumReplyPost|UserID=Natalie|Date=March 15, 2007|Text=Grants can be tricky. Some grants are considered contributions -- either restricted or unrestriced. Other grants are considered exchange transactions, i.e., the purchase of goods/services in exchange for some compensation. If this grant is a contribution, then yes, it would be reported as I indicated above. If it is an exchange transaction, it would be treated as a for-profit entity would with deferred revenue. You need to determine what type of transaction this is. And if you think it is an exchange transaction, my next question would be, then why do you think it is restricted?}} | {{ForumReplyPost|UserID=Natalie|Date=March 15, 2007|Text=Grants can be tricky. Some grants are considered contributions -- either restricted or unrestriced. Other grants are considered exchange transactions, i.e., the purchase of goods/services in exchange for some compensation. If this grant is a contribution, then yes, it would be reported as I indicated above. If it is an exchange transaction, it would be treated as a for-profit entity would with deferred revenue. You need to determine what type of transaction this is. And if you think it is an exchange transaction, my next question would be, then why do you think it is restricted?}} | ||
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| + | {{ForumReplyPost|UserID=JCCPA|Date=18 March 2007|Text=Stacy - check out FAS116 - there are some good definitions in there that will help you out. You can print it off for free in the FASB web-site.}} | ||
Revision as of 20:46, 18 March 2007
Discussion Forum Index --> Accounting Questions --> Match Expenses and Revenue in Restricted Funds
| 14 March 2007 | |
| Hello. I have a question regarding how to match expenses with revenue in restricted funds. If the non-profit organization receives temporarily restricted funds and it wants to recognize the revenue in the same month as the expense, how would it be booked (received and released)? | |
| March 15, 2007 | |
| No, no, no, I don't think so. I'm assuming these "restricted funds" are donations. If the organization is following GAAP, it must recognize donations, whether restricted or not, when they are received (and if unconditional). The expense is recognized when incurred. | |
| March 15, 2007 | |
| Grants can be tricky. Some grants are considered contributions -- either restricted or unrestriced. Other grants are considered exchange transactions, i.e., the purchase of goods/services in exchange for some compensation. If this grant is a contribution, then yes, it would be reported as I indicated above. If it is an exchange transaction, it would be treated as a for-profit entity would with deferred revenue. You need to determine what type of transaction this is. And if you think it is an exchange transaction, my next question would be, then why do you think it is restricted? | |
| 18 March 2007 | |
| Stacy - check out FAS116 - there are some good definitions in there that will help you out. You can print it off for free in the FASB web-site. | |
