Would be grateful for any comments about the treatment of grants in the accounts.
A limited company client has received a grant for emplpying an apprentice. Is this classed as "sales" or should it be disclosed as a special income?
Many thanks in advance
Feri
Replies (3)
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Sales ? What has the client sold ?
Deduct it from the cost of the apprentice's training or wages - depending on what the grant is for.
Or better still show as other income in the accounts, since FRS 105 and 102 don't really like netting off anymore :)
I'm also assuming you don't need to defer any of the grant income and there are no issues in terms of meeting the grant conditions, such that you may need to provide for any repayments due under non-compliance.