Non-Profit
Grant-Funded Asset — Deferred Income (IAS 20)
Recording a government grant received to buy program equipment as deferred income.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Program Equipment (Fixed Asset) | Asset (+) | 10,000.00 | - |
| Cash (Grant) | Asset (-) | - | 10,000.00 |
| Deferred Grant Income | Liability (+) | - | 10,000.00 |
| Grant Revenue (Released) | Revenue (+) | - | - |
💡 Accountant's Note
Under IAS 20, grants for assets are deferred and recognized as income over the same period the asset is depreciated. Each month, a portion of the deferred grant income is released to match the depreciation expense.
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