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Sir should we record grant from revenue expenditure as income when the expense relating to the grant is incurred??
Answer yes – accruals basis – so it would be the net expense to the company that would be recognised in profit or loss. If the grant were to be received before the expense is incurred it would be accounted for as a credit balance – perhaps an “other liability” because it would be presumably be repayable if the expense for which it was received was not incurred.
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