How are accounts reporting income from the coronavirus job retention scheme (ie furlough receipts) ? Are they being considered as additional income, a reduction of employment costs or as a separate negative line in expenses ?
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If the business is a limited company, this accounting treatment is specifically prohibited by company law, see:
The Small Companies and Groups (Accounts and Directors’ Reports) Regulations 2008 (SI 2008/409) at paragraph 8
I've been putting them in as additional income. It hasn't reduced the wages paid, it's financial assistance towards the cost.
So, treated like a grant towards specific costs IMO.