[Question] Accounting reporting of TERS??

[Elani Walker]

While preparing for provisional taxes, the question came op of how the TERS benefit should be reflected in the AFS.

It is received as a type of grant to assist in the payment of salaries/wages, and is not revenue.

But it increases the profit?

YOur opinion on the matter will be appreciated

[Andromeda]

The employer is simply the facilitator and the TERS benefit is that of the employees. Without knowing all of what the company has done I can't really say, but it is not income.

You should have paid it to employees exactly as received and it is neither income nor expense.