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February 23, 2015 at 8:13 am
I get it that there are 2 methods: Deferred income and capitalization method
Is capitalization method(where u deduct from asset value) illegal? I think in the UK it is… Do you know anything about it Sir?
February 23, 2015 at 8:28 am
Illegal? Really? Against the law? Has government stepped in and said “If you apply the capitalization method to this grant that we’re going to give you, then we’ll prosecute you in the Courts and you could go to prison”
That kind of “illegal”?
You may mean “not allowable” under IAS / IFRS.
However, no, it’s not forbidden. It’s a perfectly acceptable way of accounting for a grant received
The only proviso I shall add is the remote possibility that IASB has changed IAS 20 recently and I’ve missed that change. So now, immediately after I’ve posted this, I’m going to the iasplus website to check.
If it’s changed, I’ll be back!
February 23, 2015 at 8:32 am
yeah sorry for the word… “not allowable” is a better word to use.. haha
Alright confirm it please…
February 23, 2015 at 8:58 am
Hi, no, it’s still allowable. Check out the website http://www.iasplus.com
It’s a good site to check whenever you have a standards query
February 23, 2015 at 9:23 am
Indeed the website is full of useful resources, thanks
February 24, 2015 at 12:27 am
February 13, 2014 at 7:20 am
please can i know is there a lecture on non current assets held for sale and discontinued operations
February 13, 2014 at 9:20 am
If it exists, it’s on the site
Equally, if it’s not on the site, it doesn’t exist
Ahmad Masood Faqiri says
February 18, 2014 at 5:04 pm
Please kindly help me out.
I am currently studying for my ACCA Paper F7 which book will you recommend with your online lectures except the OT Lecture Notes.
And secondly whenever I get out of class and come to my room I eventually forget the lecture which I got in the classroom, any tips for this to remember and how to study effectively.
February 18, 2014 at 5:16 pm
I’m not prepared to recommend any text in preference to any other – sorry
As for forgetting the lecture as soon as you walk out of the lecture room ….. are you taking notes in the lecture? Is your mind on the subject or are you being distracted? Do you read the course notes that the lecturer was using as soon as you get back to your room? Are you doing any practising on the relevant exercises?
And besides, what’s the matter with the opentuition notes? The particular topic covered in this thread is not a topic that is ever likely to be worth more than MAXIMUM 10 marks in an F7 exam
There are so many almost guaranteed topics which WILL (probably) be asked in F7 that it seems that you are aiming to use your available time in a totally ineffectual way.
Read these ‘mini’ topics ….sure.
But get totally on top of consolidations, preparation of financial statements from base records / trial balance, cash flows, interpretation and ratio analysis.
Those are areas to put in your major effort
When you’ve mastered these major areas, then start looking at the less important / less likely to be examined topics
February 18, 2014 at 5:59 pm
Thanks Mike, for the reply yes I do take notes of the Lecture when I come to my room I can’t understand the question and the I can’t remember the Lecture.
Thats why I have asked for you tips and OT notes are best I was just thinking there might be other notes as well that you would prefer for you F7 students
I do practice but if I can’t remember anything how can I practice for example a sample question of IAS 16 Complex Asset in question it has a different structure and in notes it has some thing else
February 19, 2014 at 6:43 am
Then maybe a thorough audit of the answer will tie the course lecture, the notes and your bits of retained memory together.
Try that and let me know if it works – I have no other learning material that I am prepared to recommend
January 31, 2014 at 5:53 pm
Come on guys. You know that opentuition cannot be your ultimate tool for passing this exam. I’m sure that your text book/exam kit includes one or two of such exercises and thus there is no reason to moan. Mike and the other OT members are doing their best…..for free.
November 17, 2013 at 12:54 pm
did this topic really need a lecture record ? anyways thanks mike 😀
November 17, 2013 at 1:56 pm
Well, I didn’t think so either, but Admin persuaded me to do one.
November 6, 2013 at 1:38 pm
If a grant is received for the construction of an asset and after a year of use the asset is no longer being used and is held for sale. The grant was being amortized over the useful life of the asset. The asset is no longer being depreciated. What would be the best possible way to treat the grant????
November 7, 2013 at 3:19 pm
I suppose that the answer to that would really depend on the terms under which the grant was given. But, in the real World, I imagine that the grantor would have insisted on including the term that “if the granted asset is sold or classified as held for sale, the remaining part (or even the whole) of the grant so far not amortised should be repaid to the grantor”
But it really must come down to the specifics of the terms which lie behind the awarding of the grant
October 28, 2013 at 8:27 pm
sir is this lecture enough ???
October 30, 2013 at 8:00 am
For what? It’s enough for you to be able to deal with a sub-question concerning government grants but it’s not enough for you to use as a guide for ethics in a corrupt world.
Does that help? Or would you like to be more specific with your question?
October 31, 2013 at 7:02 pm
haha sorry for such a vague question …
is this lecture enough for me to pass tha paper ???
October 31, 2013 at 7:10 pm
No! Absolutely not. There are 100 marks in the paper and I can almost guarantee that they will not all 100 be based on government grants. I’m expecting questions on consolidations, preparation of financial statements and either a cash flow question, an interpretation question or a combination of the two. And that’s just 75%.
I don’t even believe that the remaining 25% will be entirely government grant based. In fact, I’d be surprised if it were more than 10 marks maximum.
So, in answer to your much more specific question “is this lecture enough for me to pass tha paper ???” the answer I’m sorry to have to give you is an EMPHATIC NO!!!!
Now, let me answer the question you didn’t ask (and how many times have I warned students NOT to do that?)
“Is the lecture on government grants sufficient for me to make a reasonable attempt at a part question which could potentially be in the exam for a maximum of 10 marks?”
IF that were the question you had intended to ask, then the answer would be “Probably, yes” And if you ever were to want to know more about the accounting treatment of government grants, you could always research it in a study text or even on line. But what’s in the notes SHOULD be sufficient
November 1, 2013 at 9:54 am
Is the lecture on government grants sufficient for me to make a reasonable attempt at a part question which could potentially be in the exam for a maximum of 10 marks?”
this was my question ….
i should learn to phrase my questions more specifically
November 1, 2013 at 9:59 am
absylum, you’re very welcome
October 23, 2013 at 3:28 pm
Opentuition is more than a jackpot, as it doesnt cost you anything! If any of you need more than whats been offered, maybe you can look and moan in another site. Pls respect other students and the tutor esp. Thanks ( sorry admin… Just get annoyed with someone) cheers 😉
September 12, 2013 at 11:36 am
Hello. could anyone help me with the treatment of repayment of government grants? what happens when the government grant is to b paid back? Income related and asset related grant
October 20, 2013 at 8:21 am
Credit Cash, debit Deferred Credit
If the amount to be paid back exceeds the amount in the deferred credit account, we’ll need to debit either the expense account which was credited with the grant or the TNCA account.
If it’s a TNCA grant, then we need to recalculate depreciation to date because we will have been charging depreciation on a reduced figure
August 27, 2013 at 12:55 pm
Could anyone help me, it is confusing for me. what is the treatment if GG is income related or asset related? Generally what is the main difference between the income and asset related GGs?
Thank you so much
August 27, 2013 at 7:36 pm
“Income related” is a grant related to ….Statement of Income! whereas “asset related” relates to Sattement of Financial Position.
OK, here’s a bit more help! Income related would be for example where the GG relates to wages / employment
Asset related could be a grant towards the cost of new assets
August 27, 2013 at 7:40 pm
income related GGs appear in the P&L as other income is that right? what is the accounting treatment?
Net off against the expense line item
July 2, 2013 at 4:45 pm
not sufficient explanation
July 3, 2013 at 9:11 am
It surely doesn’t need any deeper explanation! I gave this lecture (as a scientific experiment) to the troop of chimpanzees at Frankfurt zoo. Admittedly, they are an extremely bright group of chimpanzees. However 18 out of the 23 indicated that they had fully understood and wanted to move on to something more difficult like “What is the journal entry to record the purchase of a banana on credit?”
My comment below is still relevant – this lecture was recorded because there had been feedback comment that not all chapters had recorded lectures to support them so Admin persuaded me to record this and one or two others. Against my better judgement, I complied.
But, as always, if you don’t lke it, don’t listen
October 20, 2013 at 7:00 am
October 23, 2013 at 3:20 pm
Good one mike. Hahahaha
October 23, 2013 at 3:21 pm
Good one. Lol
November 17, 2013 at 10:13 am
This is the cream of the jokes, Sir. Mike! Totally hilarious.
June 5, 2013 at 9:09 am
didnt do it for me.
November 21, 2012 at 6:32 am
mike is the best.
November 17, 2012 at 1:50 pm
November 17, 2012 at 3:23 pm
@aqsa786, There are no comments “above”, yet!
And with which comments do you agree? Sharlene17 and Miss A or with my biting response?
August 18, 2012 at 9:05 pm
an example is required to be able to understand fully the lecture on gov’t grant. I thought i would have seen an excersise on how to record the gov’t grant.
Miss A.. says
November 16, 2012 at 2:25 pm
November 16, 2012 at 4:37 pm
@Miss A.., For Heaven’s Sake!! There’s nothing to the subject – it’s a straight-forward choice of two methods! I wasn’t going to even record it because it’s so bl**dy simple but I was persuaded to because not all the chapters were covered by lectures.
READ IT FOR YOURSELVES – THERE REALLY IS NO MORE BASIC SUBJECT. Here, pass me a tissue and I’ll wipe your nose for you too!
November 16, 2012 at 8:03 pm
@MikeLittle, hmmm…….but my rose is not running Mr.Mike.
soory…but i found response rude.It was kinda of suggestion from all students & i agreed to that.I know a 25 mark question cannot appear from this area, but a small part of question can carrying 2 to 5 marks can appear.In exam even I mark matters if one gets 49.It oks if not all chapters are covered by lectures.I still appreciate your efforts
November 17, 2012 at 3:28 pm
@Miss A.., Ok, here’s a response to Sharlene’s original post. Now concentrate REALLY hard because it’s a very tricky area!
“I thought I would have seen and excercise ( sic ) on how to record the gov’t grant”
Here we go!
Debit cash, Credit either TNCA or Deferred Income ( if it’s an asset related grant or…
the related expense account
Is that one whole lot better?
June 3, 2012 at 2:46 pm
I agree to the earlier comments. This lecture is useless because I can read the text myself :). More valuable would be to have explanation of this text with some practical example on how to record these transactions in Financial statements
November 16, 2012 at 2:26 pm
April 14, 2012 at 6:22 pm
A numerical example could have made the notes more comprehensible
March 20, 2012 at 10:05 pm
So what is the deffered grant income?Is it considered as a liability to the receiving organization or is it an asset?
March 20, 2012 at 5:44 pm
there should be numerical examples to make understanding of the clear…….just reading of the ias will not work……..please improve your lectures…….
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