Changan to receive 300m yuan in funds from Chinese government

Gasgoo.com (Shanghai June 6) - Changan will receive 200 million yuan ($31.59m) in subsidies and 100 million yuan ($15.79m) in research and development grants from the government, the Chongqing Economic Times reported today. The funds were confirmed in an announcement by the Chongqing Finance Bureau, and will be used to help expand the manufacturer's testing labs and improve R&D work.

At the time of the announcement, Changan had already received 200 million yuan, and is currently awaiting the remaining 100 million yuan. According to the Accounting Standard for Business Enterprises, the 200 million yuan subsidy will be classified as deferred revenue and will not affect the manufacturer's balance sheets, while the 100 million yuan R&D grant will be calculated into its current balance.