Accounting treatment for Non-monetary government grants
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Accounting for Non monetary government grant
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Quick Summary
The value of assets or expense against which the grant granted should be reduce by such amount.
Government Grants -( IAS 20 and AS 12 )
The non - monetary grants are those which are given in form of Land / Building , asset , These grants are given at a concessional rate or free ,so These grants should be accounted for at acquisition cost or nominal value ( if given free of cost ) .
The non - monetary grants are those which are given in form of Land / Building , asset , These grants are given at a concessional rate or free ,so These grants should be accounted for at acquisition cost or nominal value ( if given free of cost ) .
Should we account land and grant?
If IND As applicable to your company then refer IAS 20 , otherwise AS 12 if you are non corporate , with latest amendment if any .
Thank you. My question is:
As per the standards when a Govt. Grant takes the form of transfer of a Non-monetary asset, such as land or other resources. Both the grant & asset are accounted either at Fair value or at Nominal value. Example: Govt. provides land to the entity.
why should we recognize the same grant twice as the grant is only provided in the form of land once?
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