Accounting of governemnt grants
This query is : Resolved
07 December 2012
company has received government grants in connection with depreciable asset. how account income for the year
07 December 2012
Accounting Standard -12
1. Government grants related to specific fixed assets should be
presented in the balance sheet by showing the grant as a deduction
from the gross value of the assets concerned in arriving at their book
value.
.
2.Where the grant related to a specific fixed asset equals the whole,
or virtually the whole, of the cost of the asset, the asset should be shown
in the balance sheet at a nominal value.
.
3.Alternatively, government grants
related to depreciable fixed assets may be treated as deferred income
which should be recognised in the profit and loss statement on a
systematic and rational basis over the useful life of the asset, i.e., such
grants should be allocated to income over the periods and in the
proportions in which depreciation on those assets is charged.
.
1. Government grants related to specific fixed assets should be
presented in the balance sheet by showing the grant as a deduction
from the gross value of the assets concerned in arriving at their book
value.
.
2.Where the grant related to a specific fixed asset equals the whole,
or virtually the whole, of the cost of the asset, the asset should be shown
in the balance sheet at a nominal value.
.
3.Alternatively, government grants
related to depreciable fixed assets may be treated as deferred income
which should be recognised in the profit and loss statement on a
systematic and rational basis over the useful life of the asset, i.e., such
grants should be allocated to income over the periods and in the
proportions in which depreciation on those assets is charged.
.
08 December 2012
Many Many Thanks To You.But you have more information please send to me.
Thanks & regards
Vijay.
Thanks & regards
Vijay.
08 December 2012
For Complete Detail, You Read AS-12 Goverment Grant. Para for Depreciable Asset
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Refund of AY 22-23
- TDR receipts for agreement holder
- Inventory of finished goods
- GST APPLICABILITY ON POLLUTION CHECK SERVICE
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Applicability of Ind As to associate of associate
- Sale of property furniture sale
- MODEL FILLED AUDIT REPORT FOR TRUSTS IN FORM 10B
- 115TD on cancellation of 12A 80G Registration
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
- Need to correct "Whether it is last installment " response in Form 26 QB
- GSTR3B IMS Deshboard ( Rec. Solution )
Trending Online Classes
CAclubindia
