Voluntary Nonexchange Transactions
These are transactions that result from legislative or contractual agreements, other than exchanges, entered into willingly by two or more parties. This category of nonexchange transactions differs from the previous one in that these transactions are not imposed on the provider or the recipient. Included in this category are grants and entitlements as well as donations by other nongovernmental entities. While these transactions are not imposed on the provider or the recipient, the fulfillment of purpose and time requirements as well as eligibility requirements may be necessary for a transaction to occur.
ACCOUNTING REQUIREMENTS
The following paragraphs will briefly describe the accounting considerations for each of these categories of nonexchange transactions. Both the accrual basis of accounting and the modified accrual basis of accounting will be addressed. To clearly see how these principles are put into practice, the final section of this chapter discusses the accounting for the various types of nonexchange transaction revenues typically received by governments.
Taken From : Governmental Accounting Made Easy