We have received a gift of shares in December but the shares weren't sold until January.  When I post the gift from RE to FE it debits a security asset account and credits revenue.  This entry however throws out the balance sheet because there is no cash until January.  Any suggestions.

Thanks

Jeff

I suggest having a conversation with your finance office to get this understood.  You were donated stock in December and therefore on your balance sheet you should have an asset that you now own in December.  Your organization can legally choose to keep it or sell it.  Most places sell but the process is the same regardless.  The donation you received was stock not cash and the value of the stock is the gift value and the date you received the stock (not the sale and not the day the sale proceeds come in) is the gift date.

When/if you sell the stock it is simply a transaction your finance office handles.  It is them simply selling an asset and receiving a gain or loss on the sale.  It has nothing to do with the gift donated to you and does not change the amount of "revenue" generated in your contributions line.  It would be the same if you were donated property like a house.  You can sell it or keep it for years - no change to your revenue line either way.  When you sell it you simply remove the asset from your books and book the gain/loss.

I am not an accounant so my terminology may not be perfect but your finance office or auditors should understand.