plz give accounting traetment of subsidy rceived for machinery eith entries?????????????/
1 Replies
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.
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