30 December 2012
receive subsidy form gov. for overseas exhibition kindly advise me account head and under also suitable ledger name it is direct income or in direct income ?
30 December 2012
If grant is related to purchase, construction or acquisition of fixed asset then either reduced grant from cost of asset or account for grant under the head deferred Govt. Grant and to be transfer to income @ same rate at which depreciation on related asset is charged If grant is related to other than purchase, construction or acquisition of fixed asset then identify schedule of cost based on conditions under which grant is given. Receipt of grant should be accounted as Deferred Govt Grant and then to be transferred to P & L in the ratio of cost as per schedule as stated above
CAclubindia
