Accounting Treatment for Donated Assets

[kamranACA]

Deferred credit will appear after equity and before non-current liabilities in the balance sheet. However, some people show it after deferred liabilities in non-curret liabilities portion.

You will pass following entries

1. when asset is booked at fair value

.........fixed assets account
....................to deferred credit account

2. when depreciation is charged

.........depreciation account
....................to accumulated depreciation

3. when amortization is charged

.........deferred credit account
....................to amortization income (other income) account


Hope issue stands clarified.

regards,

kamran.