Loans: government subsidies
Government subsidy refers to the cash or non-cash resources that the government gives to the enterprise free of charge, excluding the capital investment of the government as the owner of the enterprise.
The main forms of government subsidies are: financial allocation, financial discount, tax rebate and free allocation of non-monetary assets.
At present, the main government subsidies in China include export tax rebate, financial discount, R&D subsidy and policy subsidy.
Government subsidies are divided into unconditional government subsidies and conditional government subsidies.
Conditional government subsidies: government subsidies that the government has the right to recover when some uncertain future events occur or do not occur. If the conditions cannot be met, the government has the right to take it back; Whether the conditions can be met is uncertain.
Unconditional government subsidies: government subsidies other than conditional government subsidies.
Assets that receive government subsidies shall be recognized when they actually receive or obtain the right to receive government subsidies, and when they are basically sure to receive government subsidies.
Cash assets received by enterprises from government subsidies shall be accounted for according to the actual amount.
Unconditional cash subsidies provided by enterprises shall be included in the current profits and losses at the same time as the subsidized assets are confirmed. For unconditional non-cash subsidies, according to relevant national laws and regulations, the subsidized assets should be included in the capital reserve at the same time. Non-cash assets that receive government subsidies shall be initially measured according to the present value of expected future cash flows.