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Mango - Grant Income Accounting Policies
Mango - Grant Income Accounting Policies
This page describes the three main methods used, and gives an example of the wording for the accounting policy for
the nancial statements. It also gives guidance on which policy may be most appropriate for your circumstances.
WARNING! This page contains jargon and is aimed at quali ed accountants and auditors.
Grant income is recognised when there is: 1) entitlement to the grant, 2) virtual certainty that it will be
received and 3) su cient measurability of the amount. Unspent grants are shown on the balance sheet as
restricted funds.
Grant income is recognised as it is receiveable, to the extent that the grant has been spent by the end of the
nancial year. Unspent grants are shown on the balance sheet as liabilities.
This is consistent with the cash basis of accounting, but it is commonly seen even on nancial statements
prepared on an accruals basis. E.g. 'These nancial statements are prepared on an accrual basis with the
exception of grant income which is recognised on a receipts basis'.
http://www.mango.org.uk/guide/grantincomepolicy 1/4