Grants in 2017
The amendment in the accounts of grants, typically in case of projects with final payment, is one of the most significant changes of the new accounting rules entered into effect last summer.
Common feature of applications with final payment is that the income from the grant related to the incurring costs and expenses of the given fiscal year only appears in the following fiscal year since the subsidy is only transferred once the balance sheets have been prepared.
According to the new rules, if the accounting of the grant is done by the time of the preparation of the balance sheet, the grant will be accounted against accrued and deferred assets as other income of the given fiscal year.
The amendments not only apply for grants accounted in projects, but for subsidies received from other enterprises with the exception of development grants.
Grants received as contributions for expenses may have been accounted as other income in the given business year if it had been financially settled by the preparation of the balance sheet.
There are certain provisions among the latest changes of the accounting regulations that are to be applied for the annual reports related to the business year of 2016.
For further information, please contact our office with confidence. Our accountants at ECOVIS HUNGARY are kindly at your service.