My company received a grant for expenses incurred in prior periods related to the pandemic and recorded the amount as Other income on the P&L. Now the grant office revised what was considered an eligible expense so we might to repay some of the grant funds back.
Do I record the grant funds received as a short-term liability instead of income? And, when we receive our notification from the grant office regarding the amount to be returned, should I move the amount that does not need to be returned to Other Income?
