Imagine you are the chief financial officer of a local food bank. The food bank has just been awarded a three-year, $1 million grant from the Kellogg Foundation to demonstrate how breakfasts improve the academic performance of disadvantaged children. Unlike most foundations, Kellogg has sent you a check for $1 million.

Question: As the CFO, how would you account for the receipt of this grant over the three years that it will be used, assuming it will be spent evenly over the three-year period? Discuss both the statement of activities and the statement of financial position.

Answer rating: 100% (QA)

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