How to accounts donations in kind

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2013 Dear Experts,

How should we accounts donations/gifts received in kind as per the Indian GAAP.

My client into the education sector, have received some goods in form of Books worth of 1 lacs( as per the MRP printed), at free of cost.

Now how do i account those transactions.

should 1) I account as nominal cost? 2) Should i account under the Miscellaneous income ?

Best Regards

CA.Vinita Gupta

CA.Vinita Gupta (Expert)

11 June 2013 Books account under assets should be debited and capital credited 1 lac

Dr. Rashid Mehmood, CPA, Ph.D

Dr. Rashid Mehmood, CPA, Ph.D (Expert)

12 June 2013 I have little difference of opinion with Vinita, I believe this is donation income and should be treated in accordance with the IAS 20. so donation income should be credited by debiting the books under assets.

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2013 Thanks for your efforts.

The problem here is donation is not kind of government grant and not recurring also.

Compare to business of the trust amount what we have received is not materiel.

Based on that I have recommended consider under the Income but not under the assets and nominal value of Rs 1.

But my senior manager is of difference of opinion, though my argument seems to be strong, but not finding documents to support my stand.

In the light of above suggest me other options

Regards