Accounting of Assets Received as Grant

Kumar Raju (Dy. GM) (27 Points)

22 November 2022

How an asset will be accounted for in the Books which are received through Govt. Grant as free of Cost under Category Plant and Machinary.?

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prasad Nilugal ( GST Practitioner & Accounts ) (14846 Points)
Replied 22 November 2022

What is the status, sole proprietorship, partnership firm, Company or LLP ?.

Kumar Raju (Dy. GM) (27 Points)
Replied 22 November 2022

Its a listed Private Company

Yasaswi Gomes new (Finance ) (4545 Points)
Replied 22 November 2022

Report them the usual AS way.

Either as a revenue grant or capital grant

prasad Nilugal ( GST Practitioner & Accounts ) (14846 Points)
Replied 22 November 2022

Refer IND AS 20 ...................

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Yasaswi Gomes new (Finance ) (4545 Points)
Replied 23 November 2022

Yes if you refer Indas, you have advantage like

Assets & liabilities at closing rate

Incomes and expenditures at spot rate (an average rate is used if fx rates fluctuate very highly)

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