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I understand how to treat Government Grants if they are used to purchase a depreciating asset. However, if it is a revenue grant, then would we have the full amount shown in deferred income and the full amount of the grant shown as income in the P/L (as long as the purpose of the grant has already been achieved?)
Yes, it all depends on what the grant is received for. When received it would be taken to deferred income and then we would release it dependent on the conditions it was received for. If the conditions have all been met then we could release it immediately. If it was for say towards the creation of jobs to support the remuneration of the new roles created then it would be released over time as the jobs are created.