<h1>ICDS VII: Guidelines for Accounting Government Grants in Mercantile Systems, Effective April 2015, Require Detailed Disclosures.</h1> The Income Computation Disclosure Standards (ICDS) VII, issued by the Central Board of Direct Taxes (CBDT), outlines the treatment of government grants for entities following the mercantile accounting system, effective from April 1, 2015. It covers grants such as subsidies, cash incentives, and duty drawbacks. Grants related to depreciable assets are deducted from the asset cost, while those for non-depreciable assets are recognized as income over the period of obligation costs. Refunds of grants are adjusted against unamortized deferred credits or charged to profit and loss accounts. Disclosures must include the nature and extent of grants recognized.