Ireland Government Welfare Payments (non taxable)

[Frg0]

Hi,

I'm self employed and the first two years of trading I received a weekly support payment from the government (a social welfare payment). This is not taxable income. I'm not an accountant but I am doing my own book keeping as my accounts are not too complicated.
I'd be very grateful on any advice on how to record this income in my accounts. It's not generated from sales and isn't taxable. Should I keep it seperate from sales income or should it be deducted on the profit and loss.

Thanks in advance

 

[DrStrangeLove]

It's not sales income, but it *is* revenue. Since it's not taxable, and it's not generated from sales, I'd think you would have to keep it separate in your ledger, if only to know how much of earnings comes from operations and how much from support payments. I'd say, book it to its own revenue account (Cash DR/Support Payments CR) to keep its source clear. That strikes me as reasonable.

It also sounds like it should appear after operations among non-operating items, since it's not coming from sales.

Does anyone know a specific IFRS/IAS statement that applies here?

 

[Frg0]

It's not sales income, but it *is* revenue. Since it's not taxable, and it's not generated from sales, I'd think you would have to keep it separate in your ledger, if only to know how much of earnings comes from operations and how much from support payments. I'd say, book it to its own revenue account (Cash DR/Support Payments CR) to keep its source clear. That strikes me as reasonable.

It also sounds like it should appear after operations among non-operating items, since it's not coming from sales.

Does anyone know a specific IFRS/IAS statement that applies here?

Thanks, that makes a lot of sense. I've set up an account (Cash DR/Support Payments CR) for it and it set to "Other Income" which is non operating revenue.
Thanks so much!!