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You said you are a public entity.
Are you a public sector entity such as a government?
Or are you a public issuer in the private sector, such as a large oil company?
If a government, then the category of fund to receive the donation determines the accounting since different categories of fund have different resource measurement focuses for financial reporting. In a governmental category fund, there either is no entry at all - or an entry to be eliminated for governmental fund reporting of a debit to asset and a credit to a donations revenue account that would only be reported on the government-wide financial statements. In a proprietary fund of a governmental entity the entry is the same as if in the private sector - debit asset and credit contribution revenue.
Crediting revenue versus a direct entry to retained earnings (private sector) or to net assets (public sector) is in theory asserting that there are expenses, past or future, that are in some way are connected to this revenue - and so the matching principle is upheld by crediting revenue.
| | | ---------------Original Message---------------
From: Julian
Sent: Sunday, April 03, 2011 1:40 PM
Subject: Donated assets
Thanks for the responses
What would be the initial entry when we get the donated asset in ?
Dr Asset
Cr. ?????
Thanks alot |
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