TMI BlogVII Government grants (w.e.f. AY 2017-18)X X X X Extracts X X X X X X X X Extracts X X X X ..... isclosure Standard, the provisions of the Act shall prevail to that extent. Scope 1. This Income Computation and Disclosure Standard deals with the treatment of Government grants. The Government grants are sometimes called by other names such as subsidies, cash incentives, duty drawbacks, waiver, concessions, reimbursements, etc. 2. This Income Computation and Disclosure Standard does not deal with:- ( a ) Government assistance other than in the form of Government grants; and ( b ) Government participation in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual cost of the asset or assets concerned or from the written down value of block of assets to which concerned asset or assets belonged to. 6. Where the Government grant relates to a non-depreciable asset or assets of a person requiring fulfillment of certain obligations, the grant shall be recognised as income over the same period over which the cost of meeting such obligations is charged to income. 7. Where the Government grant is of such a nature that it cannot be directly relatable to the asset acquired, so much of the amount which bears to the total Government grant, the same proportion as such asset bears to all the assets in respect of or with reference to which the Government grant is so received, shall be deducted from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eciation on the revised actual cost or written down value shall be provided prospectively at the prescribed rate. Transitional Provisions 13. All the Government grants which meet the recognition criteria of para 4 on or after 1st day of April, 2016 shall be recognised for the previous year commencing on or after 1st day of April, 2016 in accordance with the provisions of this standard after taking into account the amount, if any, of the said Government grant recognised for any previous year ending on or before 31st day of March, 2016. Disclosures 14. Following disclosure shall be made in respect of Government grants, namely:- ( a ) nature and extent of Government grants re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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