dear sir,

i am auditing a association which is registered under trust and societies act. now my question is the association received 50lakhs grant from government for construction of a community hall.

i want to know that how to treat this receipt in the balance sheet. it is carry forwarded to next years until completion of community hall.

please guide me

regards
raghavendra

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Dear Professionals
I have a query:
A company incorporated 5 yr ago. The Company have two business
1) Exporting CAD Designs to its holding Company (work place :work from home)
2) manufacturing - operation not yet started , only training work is going on (Work place: factory)
Company have expenditure related to :
1) Staff salary(both for delhi office and factory)
2) electricity, water , telephone etc expenses (Factory site only)
My question is:
1) Whether company has to treat factory related expenses as pre operative expenses?
2) What is the treatment of expenditure done at factory site in balance sheet.
Thanks in advance .