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.