- This topic has 4 replies, 2 voices, and was last updated 13 years ago by
.
- Posts
Sir how can Govt grants be a deferred income and still be a provision, they do not qualify for the definition of provisions ?
Why do you want to call the deferred income a “provision”?
And if you DO insist on calling it a provision, is a provision not a probable liability which may crystallise on the resolution of some future event, the outcome of which is substantially uncertain
But the estimate is not reliable, there is no intention/ of/for the company to sell the asset for which it has received this Grant, then or is it just called deferred income in the SOFP ! and not put under provisions ?
I think I would include it in current liabilities ( if there is a current element ) or otherwise include it within long term debt.
As for what to call it, why not something like “Government Grants”?
- You must be logged in to reply to this topic.