17 May 2013
Capital nature grant means which received in aid of capital expenses. such as cash no question of come in to cost sheet
In case of grant in aid of revenue nature also no need to consider in cost sheet, cost sheet represents the cost of the product or service, so after arriving the cost sheet and cost, in place of considering revenue or sale the same grant can be considered
04 July 2013
Govt. is 2 types of grant one is Capital grant and the other is revenue grant. Capital Grant received is to be deducted from the Capital expenditure incurred by you and then depreciation is to be charged. In case of revenue grant it is to be credited to the P & L A/c or directly credit to the expenses against which grant is received.
CAclubindia
