Hi,
This is related to indas.
When we purchase new MACHINERY
Does india offer capital allowances?
Or should we treat it as accounting for grants?
What is the difference?
Txs.
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Indas capital allowances or grant recognition
Replies (1)
Under Ind AS, government grants for machinery are governed by Ind AS 20, requiring them to be recorded either as deferred income or as a reduction to the asset's carrying value. In contrast, "capital allowances" are typically tax-related incentives (like accelerated depreciation) that fall under Ind AS 12 and affect your tax calculations rather than the asset's accounting valuation.
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