Contingent income of grant can be booked or not?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2014 hello frnds,

A XYZ pvt co expects that govt will issue next month a grant of Rs 2500000. Co want to book its income as contingent grant.

please guide me about the treatment of contingent income which is going to be received but sanction letter is not yet received.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 March 2014 u need to follow AS 12-Government grants..the treatment is already gievn there.

Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2014 Tushar g

I also know that AS 12 is for Govt grants. but I need solution. AS 12 is not solving my prob

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 March 2014 take it as defered income as prescribed by as 12...what is ur exact doubt

Querist : Anonymous

Querist : Anonymous (Querist)

06 March 2014 my doubt is that " I want to book that income but i m in doubt full condition that i can do this or not? actually i have not received any sanction letter regarding this grant amount.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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07 March 2014 without sanction letter u cannot book it nor u can show it as contingent income as per AS29.

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