I am doing financial analysis of a cooperative society. there are many funds i.e. donated special purpose funds. How do i treat them while calculating different ratios do they come in equity? if i have to comment about sustainability should i treat these like long term debt? Please help me. also there is some interest subsidy. Actual Interest rate for a loan is 10% but the funder is taking 8% and remaining 2% is transfered to some development fund. How do i treat these. Please help me
08 October 2008
If the grants are subject to fulfillment of certain conditions till such time the conditions are fulfilled, they may not get the status of equity. If the conditions are fulfilled then they can be taken under equity.
In the case of interest subsidy, it will not have any impact for cal culation of equity and debt.
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