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Where Taxpayers and Advisers Meet

Year end for a CIC

PClarke73
Posts:2
Joined:Tue May 12, 2020 3:18 pm
Year end for a CIC

Postby PClarke73 » Mon Feb 15, 2021 4:48 pm

My wife has a CIC which received a grant of £8000 which £3000 remains unspent. Would I be right in assigning this to deferred payment? The grant was for a specific project and the remainder of the money will be spent in the next financial year. Any assistant would be greatly appreciated.

Incredulum
Posts:2765
Joined:Thu Dec 03, 2009 5:35 pm

Re: Year end for a CIC

Postby Incredulum » Tue Feb 16, 2021 10:42 am

https://www.icaew.com/archive/members/practice-resources/icaew-practice-support/practicewire/news/accounting-for-grants#:~:text=%22Government%20grants%20should%20be%20recognised,should%20be%20recognised%20when%20receivable.

"Government grants should be recognised in the profit and loss account, so that the income is matched with the costs to which they relate."

If these cash grants have to be repaid then they would be creditors. If not, then I'd have thought deferred income?

PClarke73
Posts:2
Joined:Tue May 12, 2020 3:18 pm

Re: Year end for a CIC

Postby PClarke73 » Tue Feb 16, 2021 1:11 pm

Thank you for taking the time to respond.


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