S Inc. has been having financial difficulties recently due to the economic climate

in its industry sector. However, its financial

director Mr. Philip discovered that

there are a number of government financial assistance schemes. Details of the

assistance are as follows:

(a)

S Inc. has received three grants of $10,000 each in the current year

relating to ongoing research and development projects. One grant

relates to the Cuckoo project which involves research into the effect of

various chemicals on the pitch of the human voice

. No constructive

conclusions have been reached yet.

The second relates to the development of a new type of hairspray which

is expected to be extremely popular. Commercial production will

commence in 2021 and large profits are foreseen. The third relates

to

the purchase of high powered microscopes.

(b)

In 2018, S Inc.'s premises were entirely isolated from the outside world

for four months due to the renovation of roads by the local council. All

production was lost in that period. Mr. Philip has been assured

by the

council's officers that a $25,000 compensation grant will be paid on

submission of the relevant triplicate form. Mr. Philip had not yet filled the

form on 31 December 2019.

(c)

S Inc. entered into an agreement with the government that, in exchange

for

a grant of $60,000, it will provide "vocational experience" tours around

its factory, for twelve young criminals per month over a five year period

starting 1 January 2019. The grant was to be paid on the date S Inc.

purchased a minibus (useful life three

years) to take the inmates to the

factory and back. The bus was bought and the grant received on 1

January 2019.

The grant becomes repayable on a pro rata basis for every monthly visit

not fulfilled. During 2019 five visits did not take place due to the

pressure

of work and this pattern is expected to be repeated over the next four

years.

No repayment have been made yet.

Explain to Mr. Philip how to account for these grants on 31 December 2019.