Government grants sometimes become refundable because certain conditions are not fulfilled and are treated as an extraordinary item (AS 5).<\/p>\n\n\n\n
The amount refundable in respect of a government grant related to revenue is applied first against any unamortised deferred credit remaining in respect of the grant. To the extent that the amount refundable exceeds any such deferred credit, or where no deferred credit exists, the amount is charged immediately to profit and loss statement.<\/p>\n\n\n\n
The amount refundable in respect of a government grant related to a specific fixed asset is recorded by increasing the book value of the asset or by reducing the capital reserve or the deferred income balance, as appropriate, by the amount refundable.<\/p>\n\n\n\n
Where a grant which is in the nature of promoters’ contribution becomes refundable, in part or in full, to the government on non-fulfillment of some specified conditions, the relevant amount recoverable by the government is reduced from the capital reserve.<\/p>\n","protected":false},"excerpt":{"rendered":"
Government grants sometimes become refundable because certain conditions are not fulfilled and are treated as an extraordinary item (AS 5). The amount refundable in respect of a government grant related to revenue is applied first against any unamortised deferred credit remaining in respect of the grant. To the extent that the amount refundable exceeds any…<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-95370","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"\n