ICDS 7 vs. AS 12

The corresponding AS to ICDS - 7 'Government Grants' is AS - 12 'Government Grants'

Point of Difference

Basis	AS - 12	ICDS - 7
Recognition of Grant	Mere receipt is not sufficient.	Recognition cannot be postponed beyond date of actual receipt.
Grants other than those covered by specific provisions	Revenue grant recognised a income or reduced from related expenses	Doesnt clarify whether it is restricted to revenue grants
Relatable to depreciable fixed assets	Reduction from fixed assets OR Recognised as deferred revenue by systematic credit to P&L	Reduced from fixed assets
Relatable to non depreciable fixed assets	No conditions - credited as capital reserve Conditions attatched - credited to P&L over period of incurring cost of meeting condition of grant	No conditions - Treated as income Conditions attached - income over period over which cost of meeting conditions is incurred
Grant in the nature of promoters contribution	Credited to Capital Reserve. Treated as shareholders fund.	No clarity (recognisable as income)
Disclosure requirement	No disclosure for unrecognised grants	Disclosure for unrecognised grants