Accounting Standards
Government Grants Explained: How to Account for a £50,000 Innovate UK Grant Under IAS 20 and FRS 102
A £50,000 Innovate UK grant should not be booked as income the moment it hits the bank. Under IAS 20 and FRS 102, grant income must be matched to the project costs it funds, using deferred income accounting, careful journal entries, and attention to R&D tax relief rules.