Samrat Limited has set up its business in a designated backward area which entitles the company...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Samrat Limited has set up its business in a designated backward area which entitles the company for subsidy of 25% of the total investment from Government of India. The company has invested Rs.80 crores in the eligible investments. The company is eligible for the subsidy and has received Rs.20 crores from the government in February 2019. The company wants to recognize the said subsidy as its income to improve the bottom line of the company. Do you approve the action of the company in accordance with the Accounting Standard? Samrat Limited has set up its business in a designated backward area which entitles the company for subsidy of 25% of the total investment from Government of India. The company has invested Rs.80 crores in the eligible investments. The company is eligible for the subsidy and has received Rs.20 crores from the government in February 2019. The company wants to recognize the said subsidy as its income to improve the bottom line of the company. Do you approve the action of the company in accordance with the Accounting Standard?
Expert Answer:
Answer rating: 100% (QA)
AS 12 Accounting for Government Grant governs all the grants received by the business a... View the full answer
Related Book For
Microeconomics Theory and Applications with Calculus
ISBN: 978-0133019933
3rd edition
Authors: Jeffrey M. Perloff
Posted Date:
Students also viewed these accounting questions
-
Is Massey Energy striving to conduct its business in a socially responsible manner? What specific additional actions could Massey Energy take that would make an even greater contribution to CSR and...
-
Do you think the India government spending constrained by this national preference policy has a bigger effect on Indian output than unconstrained Indian government spending What could happen if this...
-
A mobile company wants to cover a city with an area of 162 sq km with ceils of 3 sq km area each. The company is given the frequency band between [580 - 854] MHz. The band is divided into parts,...
-
Explain factors governing recruitment?
-
Charger Incorporated and Sparks Electrical Company are competitors in the business of electrical components distribution. Sparks is the smaller firm and has garnered the attention of the management...
-
Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $40,000...
-
Compare the objectives of a product to its features.
-
Solve Problem 10 graphically. a. Identify the amount of unused resources (i.e., slack) at each of the graphical extreme points. b. What would be the effect on the optimal solution if the production...
-
Calculate Rm (market return from market price index) and Rj (return of share prices). Date PERIOD 1 AORD R company m m Feb-14 5403 0.008 0.3370 Mar-14 5470.8 0.008 0.3354 Apr-14 5473.8 0.008 0.3298...
-
For the emitter-stabilized network of Fig. 5.171: a. Determine AvNL Zi and Zo. b. Sketch the two-port model of Fig. 5.63 with the values determined in part (a). c. Determine AVL and AVs. d. Change RS...
-
You are an employee working for ABC Bookkeeping Inc. This is a small business environment in Alberta, Canada, with a team of 4 people including you. The Director/Owner of the business is very hands...
-
To take others opinions and finally take their own decision are a part of which technique? Autocratic style Consultative style Free rein None of the above
-
According to you, which is the best among on-the-job and off-the-job training?
-
Variance analysis helps to identify the difference between planned and actual results and its effect on the performance of the organization. True False
-
There are already huge websites available to resell used goods like furniture, home appliances, machinery, and many more. You decide to start with a similar kind of website. What decisions would you...
-
Which of the following is a programmed decision? Buying your favorite toothpaste or shampoo at the supermarket Acquire another organization Formulating the budget for the department Toyota...
-
If law represents society's standard of desirable behaviour, why are laws hotly debated, changed or disobeyed? Which laws do students frequently disobey and which laws would they never consider...
-
Read the case study Richter: Information Technology at Hungarys Largest Pharma and answer the following question: How does the organization ensure the accuracy of the data it stores?
-
In the application "Aggregating the Demand for Broadband Service" (based on Duffy-Deno, 2003), the demand function is Qs = 5.97p-0.563 for small firms and Ql = 8.77p-0.296 for larger firms, where...
-
Redraw panel b of the Challenge Solution figure to show that it is possible for trade to increase welfare even when pollution is not taxed or otherwise regulated?
-
In a monopolistically competitive market, the government applies a specific tax of $ 1 per unit of output. What happens to the profit of a typical firm in this market? Does the number of firms in the...
-
A truck is traveling at a constant \(25 \mathrm{~m} / \mathrm{s}\) when a motorcycle speeds past at a constant \(40 \mathrm{~m} / \mathrm{s}\). On which vehicle, if either, is the magnitude of the...
-
Sketch the \(\sum F_{x}(t)\) curve for the vector sum of forces exerted on the object whose \(x\) component of momentum is plotted in Figure P8.3. Curve sections are numbered for reference. Data from...
-
You wish to move a crate. (a) Is there a minimum value for the magnitude of the pushing force you have to exert to set the crate in motion? (b) Is there a minimum value for the magnitude of the...
Study smarter with the SolutionInn App