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Accounting for Non monetary government grant

soundharya lakshmi (CA Student) (25 Points)

27 July 2021

Accounting treatment for Non-monetary government grants

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CA ABHAY GUPTA (Practice) (3230 Points)
Replied 27 July 2021

The value of assets or expense against which the grant granted should be reduce by such amount.

prasad Nilugal (3909 Points)
Replied 27 July 2021

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 ) .

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soundharya lakshmi (CA Student) (25 Points)
Replied 27 July 2021

Should we account land and grant?

prasad Nilugal (3909 Points)
Replied 27 July 2021

If IND As applicable to your company then refer IAS 20 , otherwise AS 12 if you are non corporate , with latest amendment if any .

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soundharya lakshmi (CA Student) (25 Points)
Replied 27 July 2021

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?