{"id":5198,"date":"2014-12-22T07:43:12","date_gmt":"2014-12-22T05:43:12","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=5198"},"modified":"2014-12-21T07:44:02","modified_gmt":"2014-12-21T05:44:02","slug":"government-grants-for-expenses","status":"publish","type":"post","link":"https:\/\/www.officetodo.com\/public\/government-grants-for-expenses\/","title":{"rendered":"Government grants for expenses"},"content":{"rendered":"<p>There are often times when your local government can assign a grant for your company or for your industry for you to apply for the grant etc. The means may vary, however the general approach to recognizing the grant on your financial statements remains the same. \u00a0<!--more--><\/p>\n<p>As we have already covered the grants for assets, we will now focus on government grants for expenses. The general approach is that\u00a0<strong>a grant shall be recognized on the income statement on a systematic basis over the period(s) in which the entity recognizes the expenses for which the grant is intended to compensate.\u00a0<\/strong>Essentially, if you\u2019re incurring expenses the grant is for, you recognize the grant. That is obviously proportionate, i.e. if you\u2019ve encountered 45% of the cost, you recognize 45% of the grant. It is important to understand the allocation basis for the expenses as well as the grant.<\/p>\n<p>But what if the expenses already have been incurred and the grant becomes receivable on a later date. In such a case it\u2019s customary to\u00a0<strong>recognize the grant within the period it becomes receivable.\u00a0<\/strong><\/p>\n<p>When it comes to government grants it\u2019s also crucial to understand that disclosures within the financial statements prepared for the reporting period are essential to understand the periods the grants relate to, to understand the conditions the grant is subject to and so on.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are often times when your local government can assign a grant for your company or for your industry for you to apply for the grant etc. The means may vary, however the general approach to recognizing the grant on your financial statements remains the same. \u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68],"tags":[],"class_list":["post-5198","post","type-post","status-publish","format-standard","hentry","category-1-16-donations"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5198"}],"version-history":[{"count":1,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5198\/revisions"}],"predecessor-version":[{"id":5199,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5198\/revisions\/5199"}],"wp:attachment":[{"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}