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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Government Grant – reg
I appeared on FR7 yesterday. It went well.
I have a small doubt and need your valuable guidance:
Scenario is: ( it was asked in Exam)
A company received a government grant $30000 to give training to students for two years on 01.1.20×3.
On 31.12.20×4, the government cancelled the grant since the company did not comply with the requirement. Now the company has to return to the government.
Grants were accounted for properly ( as deferred income and allocated teh expenses properly)
How do we treat it ?
Hi,
How did you treat it? This is where we need to reveres what we have done, using the deferred income accrued first and if there isn’t enough of a balance within there then we would use profit of loss for any excess.
Thanks and good luck with the results!