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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”?
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