Angel DEC 2013 (grant)

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

ok thanks :)