government grant

Show Summary Details

Quick Reference

An amount paid to an organization to assist it to pursue activities considered socially or economically desirable. Grants may be revenue-based, i.e. made by reference to a specified category of revenue expenditure. Revenue-based grants should be credited to the profit and loss account in the same period as the revenue expenditure to which they relate. Capital-based grants are made by reference to specified categories of capital expenditure and should be credited to the profit and loss account over the useful economic life of the asset to which they relate. Statement of Standard Accounting Practice 4, Accounting for Government Grants, provides guidance with respect to the treatment of grants.

Subjects: Accounting.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.