Transferring Assets or Liabilities from another organisation

This article is for churches and charities that account on an accruals basis.

When a new legal entity is formed, or one legal entity merges or acquires another, you may need to account for the receipt of assets and liabilities from that entity.

Recording Assets

  • Any cash received and deposited into your organisation's bank account should be recorded as income. We recommend recording this to its own specific income category, created for this purpose. This will help you keep track of the transferred assets and will make it easy to identify them to your examiner or auditor for year-end purposes.
  • Fixed Assets or Investments should be set up as 'new' in their respective parts of ExpensePlus. You will need to start by manually uploading two cash values to one of your bank accounts to represent the receipt of the cash value of the investment to your balance sheet, and its subsequent transfer to an investment or a fixed asset purchase.

When you match these two transactions, record the income transaction to its own specific income category (as you would for cash received per the instructions above) and then record the 'expenditure' following the Investment or Fixed Asset Purchase instructions.

Recording Liabilities

Any liabilities should be added via the Adjustments screen as an Accounts Payable.

To help you better understand the Adjustments module as a whole, please visit the module overview page here.

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