Question
On 1 April Adeal Breweries 2020 received P4 500,000 fron TNT council(,Local government) . The council gave the Adeal a condition that it employs a
On 1 April Adeal Breweries 2020 received P4 500,000 fron TNT council(,Local government) . The council gave the Adeal a condition that it employs a minimum number of fifty workers every year for a period of 3 years. Adeal was not able to meet the condition because of challenges in the economy due to covid 19. The company's yearly demand of their products reduced so it was impossible for them to recruit new employees and they were now required to do full repayment due to the condition of the grant.
Required
Identify the type of grant explained above and narrate what should be recorded in the financial statements of Adeal Breweries on the 01 April 2021
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