A company had estalblished a factory set up in a backward area in 1990. It received Subsidy from Government for setting up the Factory. It had fulfilled all conditions within the required 5 years It transferred the amount of Subsidy to a Specific Account named "Govt. Subsidy" under "Reserves and Surplus" .
The Issue is in the Balance Sheet of the Company this Account i.e "Govt. Subsidy" still is shown at the amount of Govt. Subsidy even after a period of 20 years.
What should be the Correct Accounting Treatment given to the balance in "Govt. Subsidy" Account?
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