[fungaipeter]

it first depends on the method of accounting you wish to use. If you want to expense the grant immediately, say on purchase of an asset which was a condition on the granting of the grant, then you write it off immediately when you purchase the asset. Alternatively if you wish to recognize the grant as income, say the grant is to fund your payroll over a given period or to purchase an asset, you recognize the grant immediately by debiting the bank account and crediting the deferred grant income account, then over the course of the period you reduce your bank balance whilst writing off the deferred income. by recognizing it in bank you are actually incorporating it under the cash and cash equivalents.

[fungaipeter]

apologies muhammad, how can l get p1 past exam papers and answers for years 2008-2010 june?

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