TaxTMI 
TaxTMI 
TaxTMI 
IAS 12, 20 accounting of Grant in aid
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....AS 12, 20 accounting of Grant in aid<br> Query (Issue) Started By: - Jayanta Bandyopadhyay Dated:- 22-8-2025 Last Reply Date:- 17-12-2025 Accounting - Auditing<br>Got 1 Reply<br>Companies Law<br>We ha....
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....ve commissioned a new tea manufacturing plant in Assam and under CEFPPC & APC Projects, Central Govt will contribute a grant in aid of Rs. 5 Crores. Grant is not related to a specific fixed asset but ....
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....to an overall kitty. How to account for this conditional Grant-in-aid, as in case of breach of any condition, Govt will take back this grant. Reduction of assets value by the grant -in-aid amount ma....
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....y disrupt true value of assets and consequential depreciation and Tax Audit etc. Capital Reserve - is it lawfully ok as per AS 12, 20? Showing as deferred income over a period -may distort true....
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.... business performance. Kindly advise how to proceed with. Thanks and regards, J Bandyopadhyay Reply By Ryan Vaz: The Reply: ? Do NOT reduce the value of fixed assets ? Do NOT credit directly to ....
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....Capital Reserve at inception ? Correct treatment: ?? Initially record the grant as "Deferred Government Grant / Refundable Grant (Liability)" ?? Recognise it as Capital Reserve (or Income) only whe....
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....n conditions are substantially complied with This approach is fully compliant with AS 12 / Ind AS 20, preserves true asset values, and avoids audit and tax distortions.<br> Discussion Forum - Knowled....
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....ge Sharing ....