Accounting of donation received for NGO - IAS 20?

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arnob216
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Joined: 30 Nov 2020, 17:49

Accounting of donation received for NGO - IAS 20?

Post by arnob216 »

How to report the donation received from foreign donors in the financial statement for NGO? Can it be reported as per IAS 20 even though it is not government grant?

Should the donation receipt in Income Statement be equal to Expenditure made during the the year?
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JRSB
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Re: Accounting of donation received for NGO - IAS 20?

Post by JRSB »

Are there any conditions?
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Marek Muc
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Re: Accounting of donation received for NGO - IAS 20?

Post by Marek Muc »

I guess such donations are the main source of income so I don't think an analogy to IAS 20 would be meaningful. This NGO should develop a meaningful accounting policy for recognising donations as income.

For example, see how the IFRS Foundation does it:
IFRS policy.JPG
https://www.ifrs.org/content/dam/ifrs/a ... t-2021.pdf
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