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Hello Sir, how should we account for the double entry for the donated asset from and for non-government entity?
Please can you explain the question more clearly. Who is giving what to who?
The entity / Co receive the donated asset(NCA) from another non -related and non governmental entity
You can either account for the asset at fair value or at a nominal value $1
I suspect that many entities would go down the nominal value route
One of the great aunt and unanswered questions. I think they would credit a reserve and then make a transfer from that reserve to profit and loss as the asset is depreciated. I’m sure that’s why companies book these assets at a nominal value because otherwise it causes accounting complications
Great answer , how about another way round which the entity donates NCA to another non-related entity? Will the Debit entry is other expense or reserve?
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