there are some govt grants received how to make entries for these in manager ? can someone assist .thanks
Governments grants for what ?
Are they repayable?
If not, then just record them as receipts and post them to Miscellaneous Income in your P & L
it was for covid business assistance , no need to repay back and is also non taxable
i saw online some stated use as deferred income , but not sure how to make entries for this
its not an income right ?
How is it not an income ? - of course, it is
You can record it as an income - or as a reduction in costs - for example labour costs but is certainly an income
Whether it is taxable or not will depend on the tax laws in your country
Deferred Income refers to income that has been deferred to future periods - this is certainly not the case here
As for taxation, Manager does not calculate taxes due other than VAT and Sales taxes
What income and expenses are involved in your business’s tax calculation is a matter for you and your accountant.
I recorded mine as follows, with advice from my ATO rep as follows.
In Victoria, Australia we received non assesable, tax exempt receipt grants.
First I created a new Balance Sheet account
Then entered the receipt
Hope this helps.
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hi, ok thanks , so you had created an equity account and make a receipt entry to that …noted
In most jurisdictions @Joe91 approach to view it as
“…Grants related to income are required to be presented as a part of profit or loss, either separately or under a general heading such as ‘Other income’. Alternatively, they are deducted in reporting the related expense (IAS 20.29)…” [source: https://www.grantthornton.global/globalassets/1.-member-firms/global/insights/insight-content-blocks-and-media/covid-19---ifrs-government-grants/government-grants---ifrs-covid191.pdf ]
@VACUUMDOG did the right thing and ask an official to confirm where to put it but it is really rare to see Government or similar grants appear in an equity account.
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Indeed, posting a grant to equity implies you owe the grantor (the government) money upon dissolution of the company. You are effectively treating the grant as an infusion of capital.
Treatment of COVID-related support measures differs in various jurisdictions and according to specifics of the program. You are advised to consult a qualified local accountant for appropriate accounting procedures. With that advice in hand, you can come back to the forum with questions about implementation in Manager.
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