FRS 102 Other income recognition Other income Unmatched

FRS 102 - Other income recognition Other income (Unmatched) Joanne Field Ho. FFRA

FRS 102 - Other income recognition Research grants All research grants will be pre-populated as ‘PRC – Matched’ by central staff prior to 1/8/2015

FRS 102 - Other income recognition Month end income recognition process Non Exchange Transaction Label (NETL) An important driver for income recognition. ‘Restricted’ and ‘Unrestricted’ Ø The ‘further text’ field for these activity codes should explain what, if any, the restrictions on the use of the income are. ‘PRC – Not Matched’ or ‘Other – Not matched’ Ø Use of the ‘further text’ field for these activity codes is compulsory Ø It should explain why the income is not matched to expenditure/what triggers the income recognition. Page 2

FRS 102 - Other income recognition Month end income recognition process Non Exchange Transaction Label (NETL) to be populated locally Ø pre August 2015 - upload template Ø Post August 2015 - done locally as new activity codes opened Heads of School Finance are responsible for activity code ‘flagging’, by end of July 2015 Page 3

FRS 102 - Other income recognition Month end income recognition process Handy Guide to unmatched income How to run a report that identifies all your activity codes that are marked as: Ø PRC – not matched, Ø Other - not matched, It will assist you in understanding the conditions required to recognise income when the NETL flex field has been populated. Review the income on this report (YTD), and decide whether it should be recognised in month or not - following the decision tree provided. Page 4

FRS 102 - Other income recognition Unmatched income recognition – Decision Tree

FRS 102 - Other income recognition Month end income recognition process As this income is not matched to expenditure, it is possible to do your income recognition journals at any time – no waiting until WD-1!! Ø Defer the income if required, or Ø Accrue if income is recognisable but not received. Page 6

FRS 102 - Other income recognition Data cleanse and Housekeeping DATA Cleanse Before 31 st July • Populate ‘NETL’ flag • Populate ‘further text’ flag for ‘not matched’ and for ‘restricted’ Ongoing ‘Housekeeping’ reviews • Codes flagged as ‘Restricted or’ ‘Not matched’ for: – Reasonableness – No supporting reasons in ‘further text’ – Codes which are being matched to expenditure (should be central finance function) Page 7