Section 59 in The Andhra Pradesh Municipalities (Preparation of Accounts) Rules, 2017
59. Accounting of grants.
(1)General grant which is of revenue nature shall be recognized as income only upon actual receipt.(2)Specific grant towards revenue expenditure, received prior to the expenditure incurred, shall be treated as a liability till such time the expenditure is incurred.(3)Specific grants received or receivable in respect of specific revenue expenditure shall be recognized as income in the accounting period in which the corresponding revenue expenditure is charged.(4)Specific grants received towards capital expenditure shall be treated as a liability till such time the fixed asset is constructed or acquired.(5)Grants in the form of non-monetary assets (such as fixed assets given at concession rates) shall be accounted for on the basis of the acquisition cost. In case a non-monetary asset is received free of cost, it shall be recorded at a nominal value (e.g. Rupee One).Chapter - XIV Procedure for Accounting Public Works
