The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Accounting for Grants
Post Info TOPIC: Accounting for Grants
Mike H


Newbie

Status: Offline
Posts: 2
Date:
Accounting for Grants
Permalink Closed

Hello all, new member to the site hoping for some useful feedback..

 

I am currently processing the books for a r&d energy company which has been awarded a goverment grant. i am not fully sure how to treat this and would like some guidance.

 

I am aware of the two methods of treating grants, Revenue based and Capital based but what i am looking for a more definition on where in the Bal Sheet/P&L I need to create the nominal codes, ie Current Assets/Liabilities..

 

Any help is much appreciated and if you need more information please feel free to ask.

 

Kind Regards

 

Michael



__________________
Figurate


Senior Member

Status: Offline
Posts: 210
Date:
Permalink Closed

I think the first step would be to find out exactly what the grant is for eg revenue & capital and what conditions are attached to it (eg is it repayable if certain conditions aren't met) is it for a specific project etc.. etc..

__________________

Louise @Figurate   Tel: 01604 288024
web: www.figurate.co.uk - Chartered Management Accountants
blog: www.happyaccountant.com - free info on accounts, bookkeeping & tax plus the occasional meandering 
EagleEducation


Senior Member

Status: Offline
Posts: 164
Date:
Permalink Closed

I use this website http://www.iasplus.com/en/standards. It should help Sonya.

__________________
Mike H


Newbie

Status: Offline
Posts: 2
Date:
Permalink Closed

The Grant is capital based and has clauses for repayment if we move outwith the agreed scope of work. but this is an internal management issue. What i am looking for confirmation on is where in the Bal Sheet and Income Statement should i create the nominal codes.

BAL SHEET
Fixed Assets:

Current Assets:

Current Liabilities:

Long term Liabilities:

Cap & Reserves:

INCOME STATEMENT

Revenue:

COGS:

Overheads:

Any advice?

__________________
Elaine R


Senior Member

Status: Offline
Posts: 359
Date:
Permalink Closed

The company I work for have an R & D department who claim grants. We post this to the balance sheet under Debtors.
We also show it as a provision on the P & L. I don't fully understand how it works but this is where it is put.

__________________
E Roscoe
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> Accounting for Grants
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About