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Hi Chris. has anyone ever told you that you resemble Ryan Gosling? You could pass off as his brother.
Anyway, when explaining the standard, you said what you do with the deferred income depends on whether it is to buy a depreciating asset and that if you do buy a depreciating asset, it is referred to as capital grant. FINE! What i don’t get is how is this featured in example 7. it says Tweddle bought an item of PPE for $10m and received a government grant of $2m. To me when you explained the standard, it sounded as if you meant that the grant will be the one that is used to buy the PPE but in the example it doesn’t appear to be the case. It’s as if the $10m is separate from the grant. i hope i make sense.
looking forward to your promt response.
thank you.
PS! you have made life with ACCA way way easier for me. Your lectures are enjoyable and you make learning ACCA fun. i just wish i had discovered you earlier. Thank you so much1
Hi! i’ve not been mistaken for Ryan Gosling, he’s far better looking than I could wish to be. I have been taken for Freddie Prinz Jr. back in the day.
On the topic of the grant, nowhere near as fun, the $2m does not necessarily have to be the same $2m that you use to pay to acquire the asset. When we have applied for the grant we will have stated what it would be used for, but we may not receive it until after we have bought the asset itself. The accounting treatment is still going to be the same, i.e. recognise the full cost of the asset in PPE and grant received as deferred income.
Glad you enjoy the lectures and hope it continues in that fashion. Enjoy the studies and good luck with it all.
Thanks,
Chris
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