Doubt clarification
This query is : Resolved
05 September 2017
what is the effect on working capital position on receiving grant from government?
and we amortize the grant so received over a period of time
and we amortize the grant so received over a period of time
CA Rashmi Gandhi
(Expert)
06 September 2017
Such grant is capitalised on receipt & then amortize over a period of time.
Amol S Joglekar
(Expert)
06 September 2017
what is the purpose of GRANT is very important. Is it earmarked or GENERAL purpose is yet another important consideration.
CA Rashmi Gandhi
(Expert)
06 September 2017
Govt grant to be capitalised & amortised.
07 September 2017
in preparing cash flow statement though indirect method information given
receipt of govt grant 12 lakhs
net increase in working capital 1200 lakhs
they do not provide information regarding amortization of such grant
now my question is if we modify that there is amortization of such grant[adjustment] 7 lakhs
now we deduct 7 lakhs from net profit in order to arrive at operating profit
what adjustment to be made to working capital changes considering this new adjustment made by me?
receipt of govt grant 12 lakhs
net increase in working capital 1200 lakhs
they do not provide information regarding amortization of such grant
now my question is if we modify that there is amortization of such grant[adjustment] 7 lakhs
now we deduct 7 lakhs from net profit in order to arrive at operating profit
what adjustment to be made to working capital changes considering this new adjustment made by me?
07 September 2017
in preparing cash flow statement though indirect method information given
receipt of govt grant 12 lakhs
net increase in working capital 1200 lakhs
they do not provide information regarding amortization of such grant
now my question is if we modify that there is amortization of such grant[adjustment] 7 lakhs
now we deduct 7 lakhs from net profit in order to arrive at operating profit
what adjustment to be made to working capital changes considering this new adjustment made by me?
receipt of govt grant 12 lakhs
net increase in working capital 1200 lakhs
they do not provide information regarding amortization of such grant
now my question is if we modify that there is amortization of such grant[adjustment] 7 lakhs
now we deduct 7 lakhs from net profit in order to arrive at operating profit
what adjustment to be made to working capital changes considering this new adjustment made by me?
07 September 2017
in preparing cash flow statement though indirect method information given
receipt of govt grant 12 lakhs
net increase in working capital 1200 lakhs
they do not provide information regarding amortization of such grant
now my question is if we modify that there is amortization of such grant[adjustment] 7 lakhs
now we deduct 7 lakhs from net profit in order to arrive at operating profit
what adjustment to be made to working capital changes considering new adjustment made by me?
receipt of govt grant 12 lakhs
net increase in working capital 1200 lakhs
they do not provide information regarding amortization of such grant
now my question is if we modify that there is amortization of such grant[adjustment] 7 lakhs
now we deduct 7 lakhs from net profit in order to arrive at operating profit
what adjustment to be made to working capital changes considering new adjustment made by me?
Amol S Joglekar
(Expert)
07 September 2017
12 lakh......1200 lakh.......what is it?
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
- EPF ECR NEW FILE SEP 17TH 2026
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- TDS on Fixed Assets purchased
- Capitalgain tax purposes for valuation report compulsory
- Non filing of I T Returns
- Oct 2025 Invoices
- Import of Software Service.
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
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
