when government grant need to be accounted in the books which is related to investment,at the time when we receive or after filing the application for the grant. grant will be issued after 3 years.
please suggest
Menu
AS 12 GOVERNMENT GRANTS
Replies (2)
Quick Summary
Only when the grant is received, we have to account for it. Accruals based Recognition is not possible here because there is no commercial transaction here.
It is inappropriate to recognise government grants in the profit and loss statement, since they are not earned but represent an incentive provided by government without related costs. This is your criteria under capital approach. There are two methods, reduce the gross asset value and calculate deferred taxes, depreciation etc.
Now I found out, that if your firm will fulfill all necessary obligations to obtain a grant, it can be recognised today. Sorry for being hasty.
https://www.mca.gov.in/Ministry/notification/pdf/AS_12.pdf
Choose the two methods applicable, and I know it as direct and indirect methods,
Recent Topics :
- Report in GSTR 1 ( Credit Note ) for Wrong GST Rat
- Reply of summons issued under section 70 of the cg
- How to Bulk GSTIN Number Verify and Validation
- OPC Annual Filing Defaults – Need Guidance t
- OPC Annual Filing Defaults – Need Guidance t
- FCGPR of a past period
- Discuss and Download CA Final Question Paper Nov 2
- Does Parag gupta's booster batch good for CA Inter
- Police Bandobost and GST Invoice
- Understanding where manual effort goes in audit wo
Related Topics :
CAclubindia
