plz give accounting traetment of subsidy rceived for machinery eith entries?????????????/
Rupesh Maheshwari (ACA, Dip. IFR (ACCA)) (6166 Points)
21 November 2008plz give accounting traetment of subsidy rceived for machinery eith entries?????????????/
CA Abhash Mishra
(Chartered Accountants)
(598 Points)
Replied 21 November 2008
According to AS -12
Two broad approachs may be followed for the accounting treatment of government grants/subsidies: The Capital Approach under which a grant is treated as part of shareholders funds and The Income Approach under which a grant is taken to income over one or more periods.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
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