PDF · As 12
AS 12 Government Grants Summary Chart for CA Inter Advanced Accounting
- Shared by
- Kavyansh
- Course
- CA Inter
- Subject
- Advanced Accounting
- Added
- 1 Nov 2026
Part of: CA InterAdv Accounting
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This study note is a one-page summary chart on AS 12 Government Grants, prepared for CA Inter students studying Advanced Accounting. It sets out how government grants are defined and recognised, when reasonable assurance exists, and the journal entries for monetary and non-monetary grants. The chart lays out treatment for grants related to depreciable and non-depreciable fixed assets, and for grants related to revenue. It suits students preparing for accounting entries and quick revision before exams.
What the notes cover
The chart starts with the meaning of a government grant as assistance by government in the form of cash or kind, and then covers recognition under AS 12. It explains that receipt of a grant alone is not enough evidence that the attached conditions will be complied with, so money received is first treated as a liability. The preview also lists types of grants, namely monetary grants and non-monetary grants, and shows how each is recorded at initial recognition and on refund.
How to use them for revision
Because the note is laid out as a chart of journal entries, it works well for memorising the debit and credit pattern for each situation. Students can practise the entries for grants related to depreciable assets, where the deferred government grant is written off to profit and loss in proportion to depreciation, and compare them with the entries for non-depreciable assets and revenue grants. Reading the chart alongside the standard text helps in understanding the logic behind each entry.
Who should read it
This note is useful for CA Inter students revising AS 12 within Advanced Accounting, particularly those who want a compact view of grant journal entries before a test or mock. It is also helpful for students who find the standard's recognition conditions and non-monetary grant examples confusing and want a structured summary to review.
Key topics in these notes
- Recognition of government grants
- Reasonable assurance and conditions attached to grants
- Monetary and non-monetary grants
- Deferred government grant (DGG) treatment
- Grants related to depreciable fixed assets
- Grants related to non-depreciable fixed assets
- Grants related to revenue
- Refund of government grant
Related notes
Frequently asked questions
What is covered in this AS 12 Government Grants note?
The note is a summary chart covering the definition and recognition of government grants, types of grants, and journal entries for monetary, non-monetary, depreciable, non-depreciable and revenue-related grants.
When is a government grant recognised under AS 12?
The chart states that a grant is recognised when there is reasonable assurance that the entity will comply with the conditions attached and the grant will be received. Mere receipt of money is not sufficient evidence of compliance.
How is a deferred government grant written off?
For grants related to depreciable assets, the deferred government grant is written off to profit and loss in proportion to depreciation on the related asset, as shown in the chart.
Which exam is this note for?
This note is prepared for CA Inter, under the Advanced Accounting subject and the AS 12 category.
How can I get the full PDF?
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