As Grant III post

In this post commented on the different legacies, donations and grants that a company can receive as well as the accounting for operating subsidies.

Later, in that other post was talking about the peculiarities of the capital grants not repayable, and I remained to be seen as counting them.

So there must be a lynx to see what comes in this post is just that: As record a capital subsidy not refundable, given the assumptions of previous post .

And to see it, we will use an example that is how things look better, I thought to put a very basic, but I think the better one a little more complete:

On March 1, 2009 a company undertakes the purchase of a machine whose cost is 500,000 adqusición € + VAT, paying 10% cash and the rest in five annual letters of the same amount each, maturing on April 30 each year.

The machine will pay 15% annually, and the tax rate is 30%.

On March 15, granting the Company a Capital Grant not refundable 60% of the value of the machine, claiming it on April 1.

First of all, before you start posting, you should organize some data taking into account the assumptions of the previous post with what would look like this:

And now, we can start posting, I hope not to get anything;

- 03/01/09 - (We account for the purchase of the machine)

- 03/01/09 - (We counted the cash payment of 10% and the acceptance of letters).

* Note: As important example is the accounting of the grant, NOT Contabilizare the payment of bills, but when the time of payment, payment should be counted for each letter, and each year would be reclassified Long lyrics term, to become Short term.

- 15/03/09 - (Contabilizaremos the award of the grant)

- 3/15/09 - (As I said in previous post the grant should appear on your net worth, so we have to remove the tax burden)

- 04/01/09 - (We counted the payment of grant)

- 31/12/09 - (We account for the depreciation of the machine for the year 09)

- 31/12/09 - (trespass the share of the subsidy results of 09)

* Note: The amount to be charged to income is € 37,500 of which (37,500 x 0.3 = 11,250 correspond to impositvo effect) and the difference (37,500 to 11,250 = 26,250 correspond to the grant)

- In subsequent years, to 31-12 each year, should be repeated 31-12 seats in 2009, given that the next 5 years are full years, except the last, which will be amortized as still owing to not be an integer, so that for example, in 2010, the amortization of the machine is 75,000 (0.15 x 500,000) and subsidies transferred to income is 45,000 (0.15 x 300,000), of which 13,500 correspond to the effect impostivo and 31,500 to the subsidy itself, seen as noted in the previous post , the payback percentage of the subsidy is the same as the amortization of the property subject of the grant .

Finally, in year 7, we amortize it outstanding is that the machine will be 62,500, and 37,500 of the grant (11,250 and 26,250 of the tax effect of the grant), and if done well, as the sum of all depreciation shall be the value of the property: 500,000, and the sum of the account (130) Government grants and capital (479) liabilities for taxable temporary differences that we have been transferring results from year to year: 300,000

Be happy.

The accounting information of this post refers to the General Accounting Plan for Small and Medium Enterprises approved by Royal Decree 1.514/2007 of 16 November 2007 in Spain and apply from 1 January 2008.

If this is your first visit to the category of accounting entries of HelloWorld Blog I recommend reading this post (click here) where you will see the guidelines and how this type of post, and you can download if you want the general PGC PGC for small and medium enterprises as well as online consult.

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