Grant Revenue Journal Entry

Grant funds provided to you are income unless you need to return it.

Grant revenue journal entry. Accounting for government grants. Land or buildings or financial assistance for the purchase construction or other acquisition of such assets. The standard also recognises that in some cases a client may receive a grant for immediate financial support or assistance. Grants receivable as assets refer to grants of fixed assets assets that are not easily convertible into cash e g.

Record grants receivable as assets at their specified value or in the absence of a specified value record them at their fair market value. The following are the entries necessary for cost reimbursable government grant assuming the grant is determined to be an exchange transaction. As expenses are incurred. As reimbursements re received.

The revenue is recorded as the difference between the assets transferred and the liability recorded. Ssap 4 requires any revenue based grants to be recognised in the profit and loss account in the same period as the expenditure to which the grant relates. When grant awarded no entry made since award is conditional upon incurring qualifying expenses. The grant is not both income and expense.

The status of restricted does not make it liability by definition. Dr grant revenue receivable cr grant revenue. That is the plan for the activities not the entry.