How to Record Energy Efficiency Asset Subsidy
Records government subsidies received specifically for the purchase of energy-efficient equipment.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash/Bank | Asset | 15,000.00 | - |
| Deferred Grant Income | Liability | - | 15,000.00 |
💡 Accountant's Note
Government grants for assets are recognized as deferred income and amortized over the useful life of the asset.
Practitioner & Systems Framework
💻 ERP Architecture
Link the deferred income account to the depreciation schedule of the efficiency asset.
⚠️ Audit Flags
Full recognition of grant income in the period of receipt rather than over asset life.
📄 Required Documentation
Grant approval letter and proof of asset installation.
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