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.
- Excel query 198 6
- Payment on account penalties 184 5
- What font do you prefer to use for correspondence? 370 16
- New supplier 196 4
- Can I contribute to SIPP if I pay no salary/dividend from ltd company 345 6
- Uncomfortable with some advertising Sift takes 796 22
- Buying a horse?? 463 14
- Year End Bank Position 35 1
- Accounting software integration with self assessment 91 2
- PPR relief and half hectare rule 169 4
- How to post Sales figures in Sage50 Accounts (we use separate Sales ledger) 287 8
- Sage 50 cost centre limitations 121 5
- Straightforward email correspondence or PDF letter attached to blank email? 1,076 15
- Capital allowances or revenue is capital? 177 3
- Agent authorisation for RTI filing 64 1
- Do I need to pay my accountant 1,368 14
- Autoenrolment and payroll software from April 2015 575 9
- How much did you pay for your website 1,711 29
- any implications of this type of transaction 128 2
- Mem & Arts - Multiple Share Classes & Rights 129 1
- CTA study material 811
- Anyone have clients that use Pay4Later to offer customers credit? 500
- Raiders of the Lost Tax File 469
- Employment related securities question 327
- AIM Stocks and IHT 314
- Tax Relief for overseas employees 287
- Expat pension contributions? 284
- Trust for Employee 258
- Service Charge Accountant Career Options 244
- IPP (International Pension Plan) income 162