Got a charity client who received £10,000 of donations towards the purchase of a minibus. The charity can use the minibus for its general charitable purposes i.e. there are no restrictions on the ongoing use of the asset.
In the accounts for the period, my plan is to show this as restricted income, but then show a transfer to a designated fixed asset fund, against which the ongoing depreciation charge will be offset.
Does this sound reasonable? Or should I just show it as income in the designated fund as it all occurred within the period? I prefer, personally, to show it initially as restricted, as it perhaps more reflects reality - it was never at the trustees' discretion what the income could be spent on.