Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

How we treat and record received donations (cash & non-cash )?

user-image
Question added by Omar Tumah , CFO , Yougad Company for Advertising
Date Posted: 2015/12/23
Omar Tumah
by Omar Tumah , CFO , Yougad Company for Advertising

If we received donations, we must record it in our books  as an income and present it in income statement....and finally to be closed in Retained Earnings in Balance Sheet. In other words , donations must pass through income statement to retained earnings . If donations is in cash ......there is no problem. But if it is assets ....it must be recorded at fair market value of received assets.

Rufaro Camillus Mandeya
by Rufaro Camillus Mandeya , IT Technician Attaché , Smacper Printing & Packaging Solutions

They can also be receipted in a general receipt with a folio that represents financing activities not aligned with the business processes.

Imran Ahmed Mirza
by Imran Ahmed Mirza , Accounts Supervisor , Value Added Services Corp. client at Jang Group of Newspapers

Donation received is to be classified in cash flow from financing activities.

More Questions Like This