Nonprofit Accounting Basics

Grants

Accounting for Government Grants: Sample Journal Entries

Originally Posted: June 6, 2009

Following are some examples of journal entries for accounting for government grants.

Proper Accounting for Contributions:

Allowable Costs

Originally Posted: June 6, 2009

The specific items that can be charged to, and therefore reimbursed from, any grant are based on the specifics of each grant agreement.

Budget for Government Grants

Originally Posted: June 6, 2009

When you receive a grant from a governmental agency, it will typically include a program budget.

Exchange Transactions

Originally Posted: June 6, 2009

Factors that may indicate an exchange transaction:

Often it is difficult to distinguish between a contribution and an exchange transaction, the following factors are indicative of an exchan

Government Grants

Originally Posted: June 6, 2009

Government grants are a common method for non-for-profit (NFP) organizations to obtain funding.

Revenue Recognition

Originally Posted: June 6, 2009

If you determine that your government grants are contributions, then you should follow the guidance in FASB116.

Sample Journal Entries for Government Grants

Originally Posted: June 6, 2009

The following are the entries necessary for cost-reimbursable government grant (assuming the grant is determined to be an exchange transaction):

Types of Grants

Originally Posted: September 15, 2015
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