Respected Sir , my question is that when NPO receives fund for creating assets then when asset is created equal amount is transferred to capital reserve but why it is not income for NPO as it is getting asset free of cost ?
Menu
Fund based accounting for NPO
Replies (1)
Funds received for assets are restricted donations, not revenue. They are recorded as liabilities to preserve the integrity of the Income & Expenditure account, and are only moved to the Capital Fund once the asset is acquired, ensuring the NPO's true operational health is transparently reported.
Recent Topic
- Clubbing of deceased's income
- Как быст
- Which ITR to use
- Sovereign gold bond capital gain
- In TDS section no column for relationship in itr
- Query related to agricultural income of Trust
- Full & Final Settlement — what changed u
- Capital gains or losses when new equity was issued
- Looking for a FMCG foods business to acquire
- Sale of mutual fund in zerodha and AIS
Related Topics
CAclubindia
