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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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The articles point is - that without taxpayers forking over alot of money to maintain incompetant executives earning $200,000 to $800,000 a year and then them coming out and saying that they are so brilliant that they managed to make a $112 million profit, sort of flies in the face of all common sense.
The whole purpose of getting a grant like ATS or the green car fund, is to spend it in australia, on technology and processes that benefit the australian community. Not to pilfer it away, via some abstract company setup, back to head office, or to allow those incompetants to claim that they have somehow managed to make a profit.
SO once you get a grant, you put it into revenue on the profit and loss statement. If you dont spend it (sort of defeating the whole purpose of a grant), it stays on the books as "cash on hand", if you do spend it, it goes onto to the books as "assets". So it has everything to do with the Profit and Loss of a company.
The government is forking over millions each year so
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The Tax Office has disallowed $176 million in deductions over the period 2005 to 2008 for royalties GM Holden paid to a US-based GM company, GM Global Technologies Operations Corporation
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it can be sent to the US. Go figure!!