Account for Government Grant

					Example A - Grant received and applied in 2009/10

SORP 2009 treatment                    Cash             Grant Unapplied            Creditors       Capital Grants Receipts   Government Grants         Capital Grants        Capital Adjustment        GF (CIES) GF (MRS)
                                                       Account (liabilities)                             in Advance          Deferred Account        Unapplied Account            Account
                                                                                                                                                         (reserves)

Receipt                                         1000                    -1000
Applied                                                                  1000                                                              -1000
Amortisation (possible)                                                                                                                       50                                                             -50
Statutory transfer                                                                                                                                                                            -50                       50

Closing Balance                                 1000                           0               0                         0                  -950                         0                    -50            -50        50

Code Treatment

Receipt                                         1000                                                                                                                                                       -1000
Applied                                                                                                                                                                                     -1000                     1000

Closing Balance                                 1000                           0               0                         0                       0                       0                  -1000          -1000      1000

Adjustments Required

SORP Balance                                    1000                           0               0                         0                  -950                         0                    -50            -50        50

Reverse Amortisation                                                                                                                         -50                                                              50
Reverse Statutory Transfer                                                                                                                                                                        50                   -50
Recognise Income                                                               0                                                            1000                                                           -1000
Statutory Transfer                                                                                                                                                                          -1000                     1000

Code Balance                                    1000                           0               0                         0                       0                       0                  -1000          -1000      1000
Example B - Grant received 2008/09 (with no condition) and applied in 2009/10

SORP 2009 treatment                     Cash              Grant Unapplied            Creditors       Capital Grants Receipts   Government Grants         Capital Grants        Capital Adjustment        GF (CIES) GF (MRS)
                                                         Account (liabilities)                             in Advance          Deferred Account        Unapplied Account            Account
                                                                                                                                                           (reserves)

2008/09
Receipt                                          1000                     -1000

Bal 2008/09                                      1000                     -1000                  0                         0                       0                       0                         0           0            0

2009/10
Applied                                                                    1000                                                              -1000
Amortisation                                                                                                                                    50                                                             -50
Statutory Transfer                                                                                                                                                                              -50                       50

SORP Bal 2009/10                                 1000                            0               0                         0                  -950                         0                    -50            -50        50


Code Treatment

2008/09
Receipt                                          1000                                                                                                                                                        -1000
Statutory transfer                                                                                                                                                   -1000                                              1000

Bal 2008/09                                      1000                            0               0                         0                       0                 -1000                           0       -1000      1000

2009/10
Applied                                                                                                                                                               1000                    -1000

Code Bal 2009/10                                 1000                            0               0                         0                       0                       0                  -1000          -1000      1000

Adjustments Required

Adjust 1 April 2009

SORP Bal                                         1000                     -1000                  0                         0                       0                       0                         0           0            0

Transfer unapplied                                                         1000                                                                                      -1000                                   -1000      1000

Code Bal                                         1000                            0               0                         0                       0                 -1000                           0       -1000      1000

Adjust 2009/10

Adjusted SORP Bal                                1000                      1000                  0                         0                  -950                   -1000                      -50          -1050      1050

Reverse amortisation                                                                                                                           -50                                                              50
Reverse Statutory Transfer                                                                                                                                                                          50                   -50
Reverse Grants Deferred                                                   -1000                                                               1000
Applied                                                                                                                                                               1000                    -1000

Code Bal                                         1000                            0               0                         0                       0                       0                  -1000          -1000      1000
Example C - Grant received 2008/09 with a condition and applied in 2009/10

SORP 2009 treatment                     Cash              Grant Unapplied            Creditors           Capital Grants Receipts   Government Grants         Capital Grants        Capital Adjustment        GF (CIES) GF (MRS)
                                                         Account (liabilities)                                 in Advance           Deferred Account       Unapplied Account            Account
                                                                                                                                                               (reserves)

2008/09
Receipt                                          1000                                            -1000

Bal 2008/09                                      1000                            0               -1000                         0                       0                       0                         0           0            0

2009/10
Condition met                                                             -1000                  1000
Applied                                                                    1000                                                                  -1000
Amortisation                                                                                                                                        50                                                             -50
Reversal                                                                                                                                                                                            -50                       50

SORP Bal 2009/10                                 1000                            0                  0                          0                  -950                         0                    -50            -50        50


Code Treatment

2008/09
Receipt                                          1000                                                                      -1000

Bal 2008/09                                      1000                            0                  0                      -1000                       0                       0                         0           0            0

2009/10
Condition met                                                                                                              1000                                                                                  -1000
Applied                                                                                                                                                                                           -1000                     1000

Code Bal 2009/10                                 1000                            0                  0                          0                       0                       0                  -1000          -1000      1000

Adjustments Required

Adjust 1 April 2009

SORP Bal                                         1000                            0               -1000                         0                       0                       0                         0           0            0

Adjust creditor                                                                                  1000                      -1000

Code Bal                                         1000                            0                  0                      -1000                       0                       0                         0           0            0

Adjust 2009/10

Adjusted SORP Bal                                1000                            0               1000                      -1000                  -950                         0                    -50            -50        50

Reverse amortisation                                                                                                                               -50                                                              50
Reverse Statutory Transfer                                                                                                                                                                              50                    -50
Recognise Income                                                                                                                                  1000                                                           -1000
Applied                                                                                                                                                                                           -1000                     1000
Adjust creditor                                                                                  -1000                     1000

Code Bal                                         1000                            0                  0                          0                       0                       0                  -1000          -1000      1000
Example D - Grant received 2008/09 with a condition that was satisfied in 2009/10, but the grant had not been applied

SORP 2009 treatment                      Cash              Grant Unapplied              Creditors           Capital Grants Receipts   Government Grants         Capital Grants        Capital Adjustment       GF (CIES) GF (MRS)
                                                          Account (liabilities)                                   in Advance          Deferred Account        Unapplied Account            Account
                                                                                                                                                                  (reserves)

2008/09
Receipt                                           1000                                              -1000

Bal 2008/09                                       1000                            0                 -1000                         0                       0                       0                        0           0            0

2009/10
Condition met                                                              -1000                    1000

SORP Bal 2009/10                                  1000                     -1000                       0                          0                       0                       0                        0           0            0


Code Treatment

2008/09
Receipt                                           1000                                                                        -1000

Bal 2008/09                                       1000                            0                    0                      -1000                       0                       0                        0           0            0

2009/10
Condition met                                                                                                                 1000                                                                                 -1000
Statutorty Transfer                                                                                                                                                         -1000                                             1000

Code Bal 2009/10                                  1000                            0                    0                          0                       0                 -1000                          0       -1000      1000

Adjustments Required

Adjust 1 April 2009

SORP Bal                                          1000                            0                 -1000                         0                       0                       0                        0           0            0

Adjust creditor                                                                                     1000                      -1000

Code Bal                                          1000                            0                    0                      -1000                       0                       0                        0           0            0

Adjust 2009/10

Adjusted SORP Bal                                 1000                     -1000                    1000                      -1000                       0                       0                        0           0            0

Reverse SORP Recognition                                                    1000                    -1000
Recognise Income                                                                                                              1000                                                                                 -1000
Statutory Transfer                                                                                                                                                          -1000                                             1000

Code Bal                                          1000                            0                    0                          0                       0                 -1000                          0       -1000      1000
Example E - Grant received with no conditions in 2009/10 but not applied

SORP 2009 treatment                     Cash               Grant Unapplied            Creditors       Capital Grants Receipts   Government Grants         Capital Grants        Capital Adjustment       GF (CIES) GF (MRS)
                                                          Account (liabilities)                             in Advance          Deferred Account        Unapplied Account            Account
                                                                                                                                                            (reserves)

Receipt                                           1000                     -1000

Closing Balance                                   1000                     -1000                  0                         0                       0                       0                        0           0            0

Code Treatment

Receipt                                           1000                                                                                                                                                       -1000
Statutory transfer                                                                                                                                                    -1000                                             1000

Closing Balance                                   1000                            0               0                         0                       0                 -1000                          0       -1000      1000

Adjustments Required

SORP Balance                                      1000                     -1000                  0                         0                       0                       0                        0           0            0

Recognise Income                                                            1000                                                                                                                             -1000
Statutory Transfer                                                                                                                                                    -1000                                             1000

Code Balance                                      1000                            0               0                         0                       0                 -1000                          0       -1000      1000
Example F - Donated asset received with no conditions in 2009/10 - remained as creditor

SORP 2009 treatment                   Fixed Asset               Creditors           Donated Assets Account   Government Grants       Capital Adjustment       GF (CIES) GF (MRS)
                                                                                                             Deferred Account             Account

Receipt                                             1000                    -1000

Closing Balance                                     1000                    -1000                        0                       0                        0           0            0

Code Treatment

Receipt                                             1000                                                                                                          -1000
Statutory transfer                                                                                                                                  -1000                    1000

Closing Balance                                     1000                       0                         0                       0                  -1000         -1000      1000

Adjustments Required

SORP Balance                                        1000                    -1000                        0                       0                        0           0            0

Recognise Income                                                            1000                                                                                  -1000
Statutory Transfer                                                                                                                                  -1000                    1000

Code Balance                                        1000                       0                         0                       0                  -1000         -1000      1000
Example G - Donated asset received with no conditions in 2009/10, transferred to Government Grants Deferred Account

SORP 2009 treatment                  Fixed Asset              Creditors         Donated Assets Account   Government Grants       Capital Adjustment        GF (CIES) GF (MRS)
                                                                                                         Deferred Account             Account

Receipt                                            1000                                                                -1000
Amortisation                                                                                                              50                                     -50
Statutory Transfer                                                                                                                                -50                       50

Closing Balance                                    1000                     0                        0                  -950                      -50            -50        50

Code Treatment

Receipt                                            1000                                                                                                        -1000
Statutory transfer                                                                                                                              -1000                     1000

Closing Balance                                    1000                     0                        0                       0                  -1000          -1000      1000

Adjustments Required

SORP Balance                                       1000                     0                        0                  -950                      -50            -50        50

Reverse amortisation                                                                                                     -50                                      50
Reverse Statutory Transfer                                                                                                                            50                   -50
Recognise Income                                                                                                        1000                                   -1000
Statutory Transfer                                                                                                                              -1000                     1000

Code Balance                                       1000                     0                        0                       0                  -1000          -1000      1000
Example H - Donated asset received with conditions in 2008/09, conditions satisfied in 2009/10

SORP 2009 treatment                   Fixed Asset               Creditors           Donated Assets Account   Government Grants       Capital Adjustment        GF (CIES) GF (MRS)
                                                                                                              Deferred Account            Account

2008/09
Receipt                                             1000                    -1000

Bal 2008/09                                         1000                    -1000                        0                       0                         0           0            0

2009/10
Condition met                                                               1000                                           -1000
Amortisation                                                                                                                  50                                     -50
Statutory Transfer                                                                                                                                    -50                       50

SORP Bal 2009/10                                    1000                       0                         0                  -950                      -50            -50        50

Code Treatment

Receipt                                             1000                                             -1000

Bal 2008/09                                         1000                       0                     -1000                       0                         0           0            0

2009/10
Condition met                                                                                        1000                                                          -1000
Statutory Transfer                                                                                                                                  -1000                     1000

Code Bal 2009/10                                    1000                       0                         0                       0                  -1000          -1000      1000

Adjustments Required

Adjust 1 April 2009

SORP Balance                                        1000                    -1000                        0                       0                         0           0            0

Adjust Creditor                                                             1000                     -1000

Code Balance                                        1000                       0                     -1000                       0                         0           0            0

Adjust 2009/10

Adjusted SORP Balance                               1000                    1000                     -1000                  -950                      -50            -50        50

Reverse Amortisation                                                                                                         -50                                      50
Reverse Statutory Transfer                                                                                                                                50                    -50
Recognise Income                                                                                                            1000                                   -1000
Statutory Transfer                                                                                                                                  -1000                     1000
Adjust Creditor                                                             -1000                    1000

Code Balance                                        1000                       0                         0                       0                  -1000          -1000      1000

				
DOCUMENT INFO
Description: Account for Government Grant document sample