Accounting of Assets Received as Grant

How an asset will be accounted for in the Books which are received through Govt. Grant as free of Cost under Category Plant and Machinary.?
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Quick Summary
This discussion clarifies how to account for plant and machinery assets received free of charge through government grants. For listed private companies, the process follows standard accounting practices, referencing IND AS 20. This standard provides guidance on whether to treat the grant as revenue or capital, and outlines considerations for asset and liability valuation at closing rates, and income/expenditure at spot or average rates.

What is the status, sole proprietorship, partnership firm, Company or LLP ?.
Its a listed Private Company

Report them the usual AS way.

Either as a revenue grant or capital grant

Refer IND AS 20 ...................

Yes if you refer Indas, you have advantage like 

Assets & liabilities at closing rate

Incomes and expenditures at spot rate (an average rate is used if fx rates fluctuate very highly) 

 

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