COVID-19: How do I correctly account for the Coronavirus Job Retention Scheme (CJRS)?

The CJRS for furloughed employee’s reflects a government grant and should be accounted for under FRS 102 Section 24 ‘Government grants’. 

Under Section 24, entities will have the option whether to apply the accruals model or performance model to the grant and this must be applied consistently, on a class-by-class basis. Regardless of the accounting policy choice here it is expected that the recognition of the CJRS grant would be the same under both models, however the consensus is that the accruals method would be the most appropriate to the CJRS grant.  

In terms of accounting, entities should continue to recognise the salary expense as normal and recognise the grant income in the profit and loss as the entity becomes entitled to the grant (as the period of furlough progresses).

In terms of the financial reporting and disclosure requirements, medium and large companies are required to include the following specific disclosures as prescribed by FRS 102:

  • The accounting policy adopted;
  • The nature and amount of the grant;
  • Any unfulfilled conditions or other contingencies relating to the grant; and
  • An indication of other forms of government assistance from which the entity has directly benefited. 

For small companies entitled to report under Section 1A of FRS 102, there is no specific mention of government grants, however it must be ensured that the statutory accounts contain sufficient disclosures to present a true and fair view. 


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