Staff FAQs for NFPs have been extended to assist with accounting for transactions relating to AASB 1058 Income of Not-for-Profit Entities .

They may be grants for activities that an NPF has partially but not yet fully performed. Equally, grant funding in cash or another asset has not yet been fully received.

In circumstances such as accrued grants a non-cash asset might exist (for example, a financial asset under AASB 9 Financial Instruments representing a contractual right to receive cash) and should be recognised and appropriately described in the statement of financial position.

The focus is on initial recognition of this type of asset, although consequential matters relating to the recognition of associated income are also addressed.

The FAQ includes a simple practical example to illustrate the accounting.