accounting on govt. grant
This query is : Resolved
10 January 2011
A company receive a govt. grant of Rs 1.00 crore.In this Rs 70.00 lacs for capital expenditure and Rs 30.00 lacs for revenue expenditure.what is the treatment in books of accounts of company?
10 January 2011
Depends on the conditions attached to the grant..
For revenue unless the conditions specified in the grant are fully met or there is no uncertanity of meeting the conditions specified for the grant the entire revenue can be recognised.
In case of the capital grant used to purchase fixed assets, they may be recorded at nominal cost.
For revenue unless the conditions specified in the grant are fully met or there is no uncertanity of meeting the conditions specified for the grant the entire revenue can be recognised.
In case of the capital grant used to purchase fixed assets, they may be recorded at nominal cost.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Regarding IMS Mandatory from 1st July 2026
- Interest on SCSS
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
