Grant amortization

can we amortize grant on recoverable basis
if we have not received grant in bank and we amortize it in p&l on monthly whether it is right
Replies (2)
Quick Summary
This discussion addresses the accounting treatment for grants received on a recoverable basis, even before funds are in the bank. It suggests that amortising such grants monthly to the profit and loss account can be permissible. The advice given is to accrue unreceived grants, potentially using a 'receivables' account, to align with accrual accounting principles, similar to conventional revenue and capital grants.

It can be allowed. Im not sure about the treatment for AS but pretty sure it is just like any other conventional treatment- revenue grants and capital grants. If the bank did not give your grant, accrue it eg.

By RECEIVABLES a/c

To GRANT INCOME a/c (Just an idea so that you can account using accruals).

Sorry wrote the entries upside down before

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