Compound Interest Formula

Criteria to qualify as non-repayable grant Approved

The General Accounting Plan (PGC), devotes its standard of recording and valuation 18 th to the accounting treatment of grants, donations and bequests received .

The above NRV 18 th clarifies that:

• with Grants Refundable character be recorded as liabilities of the company to acquire the status of non-refundable.
• For these purposes, shall be deemed non-refundable individual there is an agreement granting the subsidy, have satisfied the conditions for granting and not there is reasonable doubt about receiving the grant, donation or bequest.

However, the additional provision unique EHA/733/2010 Order, apply to any company rated by an accurate and non-refundable grant, noting that the exclusive purpose of accounting records to understand fulfilled the conditions for granting the following criteria apply.

• Grants for acquiring an asset : if the conditions for granting required to maintain the investment for a number of years, will be considered non-refundable when the date of preparation of the annual investment has been made and there is no reasonable doubt that will continue in the period specified in the terms of the concession.
• Grants for the construction, improvement, renovation or expansion of an asset : if the conditions of the grant require completion of the work and putting them in working condition will be considered non-refundable when the date of preparation of annual accounts action has been executed in whole or in part. In the course of execution partial subsidy qualify as a non-refundable in proportion to the work performed, provided there is no reasonable doubt that completed the construction of the asset or the implementation of measures for improvement, renewal or extension under the conditions laid down in the concession agreement .
• Grants for specific items of expenditure multiannual implementation: if the conditions of the grant require completion of the action plan and the reasons that have made the subsidized activities, for example, conducting training courses will be considered non-refundable when the date of preparation annual accounts action has been executed in whole or in part. In the event of partial performance, the grant will be scored as non-refundable in proportion to the expenditure executed, provided that there is reasonable doubt to be completed on the terms set out in the conditions of grant.

Related Entries: Imputation

• temporary subsidized job creation .
• non-refundable grants received from partners.
• Subsidies in the Statement of Changes in Shareholders' Equity .
• grants, donations and legacies at the end of the year .
• accounting records (PGC) donations (members and others) .