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DEC 2014 MCQ-7

This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.

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February 24, 2016 at 4:25 pm #301859
yushanshan
Member
- Topics: 84
- Replies: 70
Hi sir,
I just wonder the reason why choice C should not be recognised as ab asset. Thanks in advance.
February 25, 2016 at 7:33 am #301954
MikeLittle
Keymaster
- Topics: 27
- Replies: 23200
The plant is the asset – the grant is deferred income ie it’s an amount paid by government to help reduce the cost of the asset for the company
Imagine the double entry
Dr TNCA
Cr Cash
Dr Cash
Cr Government Grant
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