Accounting treatment for Non-monetary government grants
Menu
Accounting for Non monetary government grant
Replies (5)
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?
Recent Threads
- Clubbing of income on ULIP
- ITR2 Processing Delay
- TDS demand payment notice
- Invoice NOT in 2B but showing in 2A, and supplier
- Is ITC available on VRF AC
- Capital gains on sale of furnished flat
- Heard & Seen Around – Your Daily Economi
- Gst interest and penalty doubts regarding missing
- Import of goods IMS telated
- ITR 6 submitting Problem
Related Threads
CAclubindia
