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Can i know why there is and adjustment to PPE and RE of $3 and why only cash grant of $1 recognised in Consol SCF?
For the PPE they have initially DR Revenue $3m CR Bank $3m, which is incorrect as the restoration should be capitalised.
The cash grant was received on the last day of the year and they have DR Bank $2m CR PPE $2m, which is again wrong as half of it relates to the creation of jobs, with the other half relating to the PPE. We therefore need to remove the $2m from PPE and set it up as deferred income. Half of this deferred income is then released through profit or loss as we have created the jobs. The remaining $1m will be released over the life of the building following the renovation.
Thanks
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