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Originally Posted by Joe5619
That article really, really, really gives me the sh!Ts!!! As an accountant, you do NOT deduct grants (which is a capital investment) from the P&L results.. Trying to make this relationship is totally & completely wrong, wrong, wrong, wrong..
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That is not the impact that they are after. They are not trying to say that the accounting is wrong, rather, that the profit was at taxpayer expense.
It does this with some basic "what if" analysis.
Looking at it simply, GMH claims a 1.12 m profit, and yet they got 1m free money.
This is not a bullet proof argument - but then no "what-if" ever is (without an alternate universe)
This is the key point in the article
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Had the company not received the ACIS grants and made foreign exchange gains, it would have finished in the red.
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So there is no need to let this article tax your accountant's heart
