USA GAAP treatment for State cash-incentive to relocate office - Not for Profit

[Roshi1987]

Hi everyone! I just joined this forum and it seems like a great resource to work out accounting questions with other accountants!

Our large non-profit is being given an unrestricted and quite large cash inventive by one of our 50 states to open a new office in their state. The question I am having is how to treat that incentive? As I understand it, it would not be a lease incentive due to that being from a landlord. It isnt something like a buildout allowance either. Maybe some kind of asset to be amortized over the lease period? What could it be classified as?

Roshi

 

[Drmdcpa]

Hi everyone! I just joined this forum and it seems like a great resource to work out accounting questions with other accountants!

Our large non-profit is being given an unrestricted and quite large cash inventive by one of our 50 states to open a new office in their state. The question I am having is how to treat that incentive? As I understand it, it would not be a lease incentive due to that being from a landlord. It isnt something like a buildout allowance either. Maybe some kind of asset to be amortized over the lease period? What could it be classified as?

Roshi

How about unrestricted donations after you move or establish the office. Prior to fulfilling that obligation it is just a promise. Once you fill the obligation you indicated it would be unrestricted.