Surprisingly I received a circular from ICPAS on how to account for the grants received from Jobs Credit.
I thought we don’t need guidance on something so simple. But then again, perhaps we should synchronise.
Anyway the specific directions that we should follow are:-
- For grant received on 31 March 2009, we should recognise it for value 31 March 2009. For grant received on 30 Jun 2009, we should recognise it for value 30 Jun 2009 etc etc.
- An entity should start accounting as per circular No. A7/2009 prospectively from 20 May 2009.
- If you have chosen to apply this circular early, you are permitted to do so.
- But if you have not applied as per Circular for the first cheque in March, you have to disclose that.
- What if we receive the cheque only after 31 March 2009? Should we then accrue for it?
- Which account should we credit the amount to?
What have you been doing for your company? Can share with me?