I prefer a Top: Assets – Liabilities = Bottom: Funds; however currently fund balance is getting the norm of most NGO’s.
Initially, when donors would remit funds to grantees they would recognize this into the income statement as income and i think even the small organizations are still practicing this.
However, there must be a common practice that is acceptable across the board for all NGO’s whether small, medium or big to have one standard way of presenting the reports and recognizing income.
I prefer a Top: Assets – Liabilities = Bottom: Funds; however currently fund balance is getting the norm of most NGO’s.
Initially, when donors would remit funds to grantees they would recognize this into the income statement as income and i think even the small organizations are still practicing this.
However, there must be a common practice that is acceptable across the board for all NGO’s whether small, medium or big to have one standard way of presenting the reports and recognizing income.