Govt grant
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 July 2013
wat is the treatment of govt grants received by the developer for a road project. Plz explain it through the general entries and presentation in books of accounts if possible.... regards narender
22 July 2013
if its treated as capital reciept then as per as-12 govt. grants it has to be deducted from fix assets.
if its ti be treated as rev income then deferred revenue a/c is to be credited.
Refer as-12 for more details.
if its ti be treated as rev income then deferred revenue a/c is to be credited.
Refer as-12 for more details.
22 July 2013
If grant is received as assistance for purchase/construction of fixed assets, then deduct the amount of grant from cost of FA and charged the depreciation on remaining amount as per normal practice.
If the grant is received as compensation for loss of revenue, then take the grant as revenue item and credit the profit/loss account
If the grant is received as compensation for loss of revenue, then take the grant as revenue item and credit the profit/loss account
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