The free online event held in English with resources in French and Spanish.

This webinar covered the proposals in relation to Revenue from grants & donations that are set out in the International Non-Profit Accounting Guidance Exposure Draft 2 (INPAG ED2).

The webinar took the following questions and comments from participants:

Q1: This revenue recognition model seems very complicated at first sight – new terms, and a fairly complex process for recognsing revenue from Enforceable Grant Agreements – yet this is supposed to be for small and medium NPOs?

Q2: Given the complexity of accounting for EGOs, what is the value-add that it brings? Are the benefits worth it?

Q3: The accounting for EGOs (5 step model) looks very similar to the way that ‘contracts for services’ are accounted for in IFRS for SMEs. Why are we bringing for-profit accounting approaches into non-profit transactions?

Q4:The terms income and revenue (Spanish ingresos) are associated with profit. Could we use more non-profit friendly terms like ‘income resources’ or ‘money inflow’.

Q5: How is match funding accounted for in INPAG. For example if a donor gives 80 towards a project costing 100, and the NPO has to provide the other 20?

Q6: How are indirect cost contributions accounted for in INPAG? For example a grant of 50 for direct project costs plus 5 (10%) for indirect project costs?

Q7: If an NPO has a multi year restricted grant, can the revenue be recognised according to the payment plan?

Q8: If there is a capital grant that involves constructing a building ang then using it for a specified purpose over a number of years – the video said the construction and use elements should be two separate EGOs – but how much of the grant amount (for construction) could be allocated to the EGO related to use?

Watch the video below