grant
Under a grant ( English Grant ) means in general financial subsidies , the one economic entity as a financial aid made available. The grant can also take the form of a transfer of cash , goods or services .
General
The grant is a financial contribution . The person who assigns the grant is, (as a donor English donor ) denotes that the beneficiary ( English Grant recipient , the grant resources available). Economic entities such as companies or private households are eligible as grant recipients .
The related concept of transfer payments describes a collective term in economics for state payments to natural persons and companies . Public investment grants can also be conditionally or unconditionally repayable. In contrast to is meant by a grant element ( english Grant element ) the credit conditions of a financial commitment of funds (especially loans), as interest rate , maturity and grace periods. As a rule, no loan interest is payable on grants . In this respect, grants differ from loan obligations, which are repayable and usually have an interest rate.
meaning
A distinction among other unique ( English one-time grant ) of multiple grants. But unconditional ( English unconditional ) from to conditions ( English conditional grants ) knotted grants. As a rule, grants are not repaid by the recipient.
The term is commonly used when it comes from a government or foundations . A typical example are scholarships to students or to “ non-profit organizations ”. Another example is Grants between state based on agreements (e.g., B. government agreements ). For example, the Kreditanstalt für Wiederaufbau within the framework of financial cooperation on behalf of the Federal Government ( Federal Ministry for Economic Cooperation and Development ) grants grants for projects in poorer developing countries or in "soft" sectors in which repayment of loan obligations cannot be accepted. This form of grant is also known as a financial contribution .
Examples of subsidies are, however, also the printing subsidy in the publishing industry or the advertising subsidy , which is given by the manufacturer to trading companies for advertising purposes.
In the United States there are two types of government subsidy programs earmarked ( English categorial grants ) and lump-sum grants ( English block grants ), which inter alia on the influence of the encoder to use different. The terms and conditions of earmarked grants can be so restrictive that grant recipients must first set aside provisions until the state has confirmed compliance with the conditions.
Accounting
When accounting for a private grant, one must distinguish between
- Subsidies from a partner that result from the corporate relationship : These represent additional equity in a partnership . In the case of corporations , the subsidy is accounted for as a capital reserve .
- Grants are part of a return are : these are called passive Prepaid expenses recognized as such grants, the cost decrease of the company or constitute pay for future benefits.
When accounting for public grants, one has to distinguish between
- Conditionally repayable grants : the accounting must be checked in each individual case.
- Absolutely repayable grants : these must be booked as a company's liabilities .
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Non-refundable grants (“lost grants”; for an investment ) : these can
- either deducted from the acquisition / production costs of an investment and thus distributed over the useful life of the investment through reduced depreciation ;
- or recorded directly as income for the period in which the grant was received.
A grant can also be a piece of property that a donor gives to the recipient to promote a purpose in his own interest. If there is no self-interest on the part of the provider, no subsidy is given (R 6.5 Subsidies for capital goods).
The classification of investment grants under accounting law is controversial and therefore does not provide a right to choose, but rather a margin of discretion for the accounting party.
Grant principle
Municipal museums or theaters , for example, operate according to the subsidy principle , whose income from entrance fees does not cover the total costs and therefore receive subsidies from the municipal budget . They are therefore misleadingly called subsidy companies which, as public companies, do not provide cost-covering services.
literature
- Wolf, Sandra. Accounting for grants according to HGB and IFRS. Vol. 24. Springer-Verlag, 2010.
Web links
Individual evidence
- ↑ Joachim S. Tanski, International Accounting Standards: IFRS / IAS Step by Step . Vol. 50852. Vahlen, 2005, p. 309
- ^ Emil Huebner / Ursula Münch, The political system of the USA: an introduction . Vol. 395. CH Beck, 2003, p. 29
- ↑ Matthias Alber / Karsten Melzer / Birgit Reindl / Johannes Rümelin / Thomas Scheel, Crash Course Tax Law: Exam 2013 . Schäffer-Poeschel. ISBN 978-3791032870 . P. 594
- ↑ Wolfram Scheffler, Taxation of Companies II, Tax Balance Sheet and Asset List , 5th Edition, Heidelberg, 2007, p. 176
- ↑ Günter Wöhe , Introduction to General Business Administration , 25th edition, 2013, p. 30
- ^ Ottmar Schneck, Lexikon der Betriebswirtschaft , 2012, o. P.
