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Accounting for CJRS

Which period to account for the grant, where it's received after the period in which it relates?

Didn't find your answer?

Apologies if this has been raised before, but I couldn't see via the search function.

What's the consensus on accounting treatment for CJRS under FRS102, in terms of accruing for the receipt?    Ie, staff furloughed in March, but grant not received until April.  If staff furloughed for all of March, then at 31 March they are on furlough, reasonable assurance they will meet conditions (having been off for more than 3 weeks) and reasonable assurance the grant will be received.  My take is to accrue the income - debit balance sheet, credit P&L at 31 March for the monies to be received so the income matches with the wage expense.

How about staff furloughed on, say 23 March?  At 31 March there is still reasonable assurance they will meet the 3 week condition and the grant will be received, but they have not technially met the conditions at that point (even though it will be clear they will be furloughed for the qualifying period).   Do you still accrue the proportion 23 - 31 March into the March accounts, or leave and recognise the grant in full in April?

Again, apologies if this has been raised before, or perhaps it hasn't because it's blindingly obvious!   

 

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RLI
By lionofludesch
11th Jun 2020 18:09

Well, given that you're asking today, you'll know whether these folk qualified for furlough, so accrue for any grant received.

If you were finalising the accounts on 1st April - yes - there may have been some doubt but, imho, it's unwise to finalise accounts within days the year end. Things can happen post balance sheet (or whatever it's called these days) that have an effect on the accounts.

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By SimonStone
11th Jun 2020 18:13

Duplicate!

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By SimonStone
11th Jun 2020 18:12

Thanks, that's my take. Makes sense that the income then matches with the expense - I guess I was unsure as to whether you could review with the benefit of hindsight (ie, now, today), or whether you should put yourself in the shoes as at 31 March.

Thanks for the reply - I'll be accruing at year end cut off dates for CJRS received at later dates.

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Replying to SimonStone:
RLI
By lionofludesch
11th Jun 2020 18:22

Nice little village, Simonstone. Been through it many times.

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Replying to lionofludesch:
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By SimonStone
11th Jun 2020 18:35

[Googles quickly] So it appears - a small village and civil parish in the Ribble Valley district of Lancashire, England. I might pay a visit when lock down is over!

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Replying to SimonStone:
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By Open all hours
11th Jun 2020 22:06

Simonstone Hall. Hawes, Wensleydale, Yorkshire. Where Jeremy Clarkson effectively punched his way out of the BBC.

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Replying to Open all hours:
RLI
By lionofludesch
12th Jun 2020 11:17

Indeed it was. That was the one I was thinking of. Heading north out of Hawes over the Buttertubs.

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By Calculatorboy
11th Jun 2020 20:41

It's called accruals

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