SORP Insights: Income Recognition FAQs

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SORP Insights: Income Recognition FAQs (PDF 620KB)

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Document Details

Author Name:
Pesh Framjee
Author Organisation:
Crowe Clark Whitehill
Document ID:
Not supplied
Publication Date:
11/04/2016
Publication Type:
PDF
Document Origin:
Not supplied

Abstract

Crowe Clark Whitehill runs a help line for the Charity Finance Group (CFG). This guidance note considers some of the frequently asked questions from charities relating to income recognition.

Questions covered include -

  • Will the modification of the income recognition criteria mean that charities will have to recognise more income and restate their income for prior periods when they adopt SORP 2015?
  • Is grant income to be recognised differently from contract income?
  • Does this mean that we can recognise income in line with related expenditure?
  • What about time restrictions? 
  • Can income be recognised in line with a funder’s stage payments?
  • At present we recognise grant and donation income when we know that we will be receiving it, does all the discussion above mean that we will need to change this and defer some of the income?
  • Has SORP 2015 changed when a legacy should be recognised?
  • What about gifts in kind?
  • What about the time value of money?

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