Page 202 - Annual Report 2019-20

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SCHEDULE 14 Background
Vigyan Prasar, New Delhi, an autonomous organization under the Department of Science & Technology, Government of India, was set up in 1989 to take on large-scale science and technology popularization tasks.
Significant accounting policies
a) Basis of preparation
The financial statements are prepared in accordance with the Generally Accepted Accounting Principles in India to comply with relevant Accounting Standards and relevant provisions of General Financial Rules 2017, of Department of Expenditure, Ministry of Finance, and Government of India. The financial statements have been prepared on accrual basis under the historical cost convention except Gratuity, leave Encashment and other long term Employee Benefits are provided on cash basis
b) Grants:
Except for the grants received for the creation of capital assets till the financial year 2015-16, which as per past practices are treated as items of income in their entirety to maintain consistency, grants received after Financial year 2015-16, are accounted for in accordance with AS 12 of ICAI.
In the case of capital grants, amount equal to the amount of depreciation on assets acquired out of capital grant is transferred to income and expenditure account.
Grant for non-capital items are credited to the income statement to the extent utilized to defray expenditure, and balance if any, is carried forward as liability to be adjusted against future grants
Unutilized grants for projects are carried forward in the balance sheet until project is completed, and remaining amount if non refundable is treated as income; conversely any deficit, if not recoverable is treated as expense in the terminal year.
Interest on grant funds, if so provided in the terms of grant, is treated as accretion to grant funds.
c) Fixed Assets and Depreciation
(i) Fixed Assets are stated at historical cost less depreciation. Cost of acquisition is inclusive of freight, duties, taxes and incidental expenses. Depreciation is provided on WDV (Written down Value) Method, as per rates specified in the Income Tax Act, 1961.
(ii) Fixed assets created out of capital grants are carried at original cost and depreciated as provided in clause (i) above.
d) Inventories
Stock Items (including scientific kits, posters and dvd Disk) are value at cost. Cost is arrived at using Weighted Average cost formula
VIGYAN PRASAR ANNUAL REPORT 2019-2020