We are a new business and so have applied for funding from the state in which we have just opened an R&D facility - we just received funding which can be used to purchase equipment, job training, etc. There is no obligation to pay these funds back. I chose to book this as a credit to facility costs in the P&L since we were eligible to receive the 1st payment upon entry into our facility lease. I now have someone questioning how i booked this. I could not find any accounting guidance. Any comments would be appreciated