Accounting for Grants for Sporting Bodies


Navigating the intricate landscape of accounting for grants can be challenging for many organisations. Proper accounting for grants is crucial not only for compliance with financial regulations but also for maintaining the integrity and transparency of financial statements.

If you are in receipt of grant income, you need to identify whether it is a revenue grant or a capital grant. The accounting treatment is different for these two grant types.

Revenue Grants

Under FRS102, revenue grants are accounted for under the accruals model. This means that these grants are recognised in the Income and Expenditure Account in the same period as the related expenditure. Therefore, if grants are not expended in the year, the grant income needs to be deferred into the following year. This unspent portion of the grant income is deferred and shown in the balance sheet as a liability in creditors amounts falling due within one year.

Capital Grants

These are grants relating to capital expenditure. Under FRS102 these grants are accounted for under the accruals model. Expenditure on tangible fixed assets is credited to the income and expenditure account at the same rate as the depreciation of the asset that was acquired with the grant. For example, you acquired a fixed asset for €10,000 and its estimated economic useful life is 5 years, then €2,000 of the grant will be released in to the Income and expenditure account to match the €2,000 depreciation charge. The balance of the grant of €8,000 will be split between creditors amounts falling due within one year, €2,000 and creditors amounts falling due after more that one year €6,000. The fixed asset in the balance sheet with be carried at a net book value of €8,000 being cost of €10,000 less accumulated depreciation of €2,000.    

Other items to consider when accounting for grants:

1. Nominal structure – it is important to review your nominal structure to ensure:

2. Terms and conditions of the grant - It is imperative to read and and gain an understanding of  the rules attaching to the grant and to know:

 In summary in relation to grants it is vital to:

  1. Know the type of grant received
  2. Account for it correctly
  3. Track expenditure
  4. Adhere to the terms and conditions attached to the grant and avoid being sin binned or red carded.     

If you need advice on the accounting treatment of grants or in relation OSK's audit and accountancy services please contact, Deirdre McDermott

OSK is the official Audit and Accounting partner of the Federation of Irish Sport (FIS) and the preferred supplier of these services to the Federation’s members.

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