AS 12 - 175 Accounting Standard(AS 12(issued 1991...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
175 Accounting Standard (AS) 12 (issued 1991) Accounting for Government Grants Contents INTRODUCTION Paragraphs 1-3 Definitions 3 EXPLANATION 4-12 Accounting Treatment of Government Grants 5-11 Capital Approach versus Income Approach 5 Recognition of Government Grants 6 Non-monetary Government Grants 7 Presentation of Grants Related to Specific Fixed Assets 8 Presentation of Grants Related to Revenue 9 Presentation of Grants of the nature of Promoters contribution 10 Refund of Government Grants 11 Disclosure 12 ACCOUNTING STANDARD 13-23 23
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Accounting Standard (AS) 12 (issued 1991) Accounting forGovernment Grants (This Accounting Standard includes paragraphs 13-23 set in bold italic type and paragraphs 1-12 set in plain type, which have equal authority. Paragraphs in bold italic type indicate the main principles. This Accounting Standard should be read in the context of the Preface to the Statements of Accounting Standards 1 .) The following is the text of the Accounting Standard (AS) 12 issued by theCounciloftheInstituteofCharteredAccountantsofIndiaon ‘Accounting for Government Grants’. The Standard comes into effect in respect of accounting periods commencing on or after 1.4.1992 and will be recommendatory in nature for an initial period of two years.Accordingly, the Guidance Note on ‘Accounting for Capital Based Grants issued bythe Institute in 1981 shallstand withdrawn from this date. This Standard will become mandatory in respect of accounts for periods commencing on or after 1.4.1994. 2 Introduction 1. This Statementdeals with accountingfor governmentgrants.Government grants are sometimes called by other names such as subsidies, cash incentives, duty drawbacks, etc. 2. This Statement does not deal with: (i) the special problems arising in accounting for government grants in financial statements reflecting the effects of changing prices 1 Attention is specifically drawn to paragraph 4.3 of the Preface, according to which Accounting Standards are intended to apply only to items which are material. 2 Reference may be made to the section titled ‘Announcement s of the Council regarding status of various documents issued by the Institute of Chartered Accountants of India’ appearing at the beginning of this Compendium for a detailed discussion on the implications of the mandatory status of an accounting standard.
Background image of page 2
Accounting for Government Grants 177 or in supplementary information of a similar nature; (ii) government assistance other than in the form of government grants; (iii) government participation in the ownership of the enterprise. Definitions 3. The following terms are used in this Statement with the meanings specified: 3.1 Government refers to government, government agencies and similar bodies whether local, national or international.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/07/2011 for the course MBA 0001 taught by Professor Akshat during the Spring '09 term at Institute of Management Technology.

Page1 / 11

AS 12 - 175 Accounting Standard(AS 12(issued 1991...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online