Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.
Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.
Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.
All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.
Coronavirus Job Retention Scheme (CJRS)
Neurosight Ltd has recognised the grant it received from the CJRS scheme on the accruals basis. As this was a grant for immediate financial support during the Covid-19 pandemic, it has been recognised immediately in the profit and loss account. The company met the eligibility criteria set out by the Government. The grant amounted to £12,782 and £1,323 was received post year end.
Bounce Back Loan (BBL)
The company received a Bounce Back Loan of £30,000 in May 2020 from Barclays. The loan is unsecured and is repayable over 6 years with no repayments due in the first year. The company benefited from business interruption payments totalling £688.
Business Support Grant
Neurosight Ltd has recognised the grant it received from the business support grant fund on the accruals basis. As this was a grant for immediate financial support during the Covid-19 pandemic, it has been recognised immediately in the profit and loss account. The company met the eligibility criteria set out by Canterbury City Council. The grant amounted to £7,000 and was received during the year.