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How should the remission of the tax-exempt PFR be recorded

Decommissioning of the financial subsidy in 2021 should be entered in the accounts of the year in which the redemption took place.

Decommissioning of the financial subsidy in 2021 should be entered in the accounts of the year in which the redemption took place.

Decommissioning of the financial subsidy in 2021 should be entered in the accounts of the year in which the redemption took place. Non-collection of tax applies to income (income) received by beneficiaries of support from 1 June 2021 to 31 December 2022

From the point of view of the Accounting Act received from the PFR by the financial subsidy entity meets the definition of liabilities as set out in Article 3(1)(20) This bill. At the date of its inception, this obligation is included in the accounts as an obligation to the PFR for a financial subsidy, in an amount requiring payment (Article 28(1)(8) Act), on the date of that economic operation (cash flow), on the basis of a bank statement.

Where the amount of the subsidy received is decommissioned (the waiver of the undertaking is of a incidental nature), the accounts will reduce this part of the obligation in correspondence with other operating income (Article 3(1)(32) The Accounting Act) on the basis of appropriate source evidence, on the date of the economic operation, in accordance with the conditions for granting such funding.

Decommissioning of the financial subsidy in 2021 should be included in the accounts of the year in which the redemption took place, i.e. in 2021 (calendar year). As indicated above, the waiver of the aforementioned liabilities increases the remaining operating revenue.

Detailed information can be found on the website of the Ministry of Finance in the tab. Financial statements over time COVID-19.

Recommendations of the Accounting Standards Committee on Financial Statements during the COVID pandemic -19; point IV.8.

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