a) Depreciable assets – shall be deducted from actual cost of the asset or written down value of block of assets to which concerned asset or assets belonged to.
b)Where the Government grant relates to a Non-Depreciable asset or assets of a person requiring fulfilment of certain obligations, the grant shall be recognised as income over the same period over which the cost of meeting such obligations is charged to income.
c) Where the Government grant is of such a nature that it cannot be directly relatable to the asset acquired, so much of the amount which bears to the total Government grant, the same proportion as such asset bears to all the assets in respect of or with reference to which the Government grant is so received, shall be deducted from the actual cost of the asset or shall be reduced from the written down value of block of assets to which the asset or assets belonged to.
d) The Government grant that is receivable as compensation for expenses or losses incurred in a previous financial year or for the purpose of giving immediate financial support to the person with no further related costs,shall be recognised as income of the period in which it is receivable.
e) Any other government grant other than mentioned above shall be recognized as income over the periods necessary to match them with the related costs, which they are intended to compensate.
f) Non-Monetary Grants :The Government grants in the form of non-monetary assets, given at a concessional rate, shall be accounted for on the basis of their acquisition cost
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