Income recognition principles in charity financial reporting
Pesh Framjee explains how current financial reporting standards and guidance should be interpreted...
Deciding on what income needs to be brought in to the Statement of Financial Activities (SOFA) continues be difficult for many charities. This article considers the income recognition principles that relate to entitlement – it considers the issues of performance-related grants and when it is appropriate to recognise an asset by way of work in progress or a debtor for funding which has not been received for work undertaken.
Author: Pesh Framjee
Pesh Framjee Pesh Framjee, Head of the non-profit unit at Crowe Clark Whitehill is Special Adviser to CFDG and is a member of the Charity SORP Committee. He has worked with charities for over 35 years and advises charities on financial, governance and strategic matters.
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