Accouting standard 12 as for govt,grants

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rajasree.prasanna (Querist)
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07 October 2013 Dear all,

whether govt,grants to be treated on accrual basis or receipt basis? if so., if grant is granted on 5th mar 2012 and grant is received on 7th Aug 2013 what is the treatment for both the years?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 October 2013 it is to be taken on receipt baisis only.
so take 7.8.2013

rajasree.prasanna

rajasree.prasanna (Querist)
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10 October 2013 thank you sampath sir...but according to accounting policy we will be following accrual basis.but for this we are following receipt basis.could you clarify this.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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10 October 2013 Yes agreed but this treatment is specifically as per AS 12 on "Accounting for Government Grants" and also if u refer AS -9 on Revenue recognition it specifically says that when income is very certain to be received with no ultimate uncertainity then only it should be recognised else it should be recognise only when it is actually received.

rajasree.prasanna

rajasree.prasanna (Querist)
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18 October 2013 oh..thank you.sir

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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18 October 2013 You are welcome.