COVID-19
Accounting for Covid-19 Steve Collings examines the accounting treatment of grants received in respect of the Coronavirus Job Retention Scheme.
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Steve Collings Partner, Leavitt Walmsley Associates Ltd
s businesses continue to deal with the significant level of disruption caused by the Covid-19 pandemic, HMRC has now started to send payments out to employers in respect of the Coronavirus Job Retention Scheme (CJRS) for employees that have been furloughed. For self-employed individuals, it is expected that the self-employed income support scheme will be up and running from the middle of May 2020. This article examines the accounting treatment in respect of grants received in respect of the CJRS and the Coronavirus Statutory Sick Pay Rebate Scheme, together with the disclosure requirements under UKÂ GAAP.
Grants received from HMRC for furloughed employees
Employers who have furloughed employees will have been claiming the 80% grant available from HMRC. Many businesses have now received these grants and, in terms of the accounting treatment, there are a couple of points that need to be considered where the financial statements are concerned. FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland deals with government grants in Government Grants s 24. FRS 102 para 24.3A states that government grants cannot be recognised in the financial statements until there is reasonable assurance that:
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