Treatment for non-government grants
If an entity receives fixed assets as grants from an individual or business entity, what is the accounting treatment for this transaction against the backdrop of the grant not being a government grant, which is provided for under International Accounting Standard 20(IAS 20).
Should the value of the fixed assets received be credited to a grants account and the corresponding debit taken to fixed assets, with annual credits being made to the Income statement over the life of the fixed Asset (in otherwords no depreciatio being charged at all!!!!) such that the grant account would have been released in its entirety by the end of the estimated useful life of the Fixed Asset?
Also, what should be the amount that should be recognised as being the value of the asset given as grant- i.e. is it the market value subsisting at the date of the grant or otherwise?
Please provide me with the Reporting framework/standard (UK and/or International) for this type of transaction.
Thanks in anticipation of a swift reply.
- What would you do in this situation? 468 12
- Travel and Substinance expenses while abroad 117 3
- Help Required 262 6
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 215 2
- What quality paper do you use for correspondence? 381 14
- What's in a name ? 212 4
- not self employed since March 2011 now received a penalty for late tax return for year 2012-13 138 3
- ATED Penalties 254 1
- late second payment on account 145 2
- US royalties 70 2
- Project being run jointly 117 2
- Reclaiming overpaid employer NI contributions 172 2
- Straightforward email correspondence or PDF letter attached to blank email? 154 3
- Sole trader mix up 282 4
- Vat on 'pig slurry' - palatable subject I know! 728 6
- FILING COMPANY ACCOUNTS 885 27
- Staff accommodation without a rental value or RV 206 4
- Filing company accounts 131 1
- Accountancy work for Farmers 500 16
- CIC Tax - what is trading? 157 5
- CTA study material 696
- Anyone have clients that use Pay4Later to offer customers credit? 421
- Employment related securities question 263
- AIM Stocks and IHT 243
- Tax Relief for overseas employees 195
- Trust for Employee 182
- Expat pension contributions? 180
- Quickbooks losing VAT return data 151
- Raiders of the Lost Tax File 142
- IPP (International Pension Plan) income 114