capital grantForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › capital grantThis topic has 1 reply, 2 voices, and was last updated 2 years ago by Stephen Widberg.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts July 28, 2021 at 12:44 pm #629667 Jiya024MemberTopics: 168Replies: 56☆☆☆Professor there are 2 methods for recognition of Capital Grant,method 1:deferred income method and method 2: the method in which the carrying amount of the asset is reduced, in which of the two methods is the gearing higher? July 28, 2021 at 5:30 pm #629690 Stephen WidbergKeymasterTopics: 15Replies: 3210☆☆☆☆☆If debt is only ‘interest bearing’ as it should be, then assets would be lower under method 2, so gearing would be higher.Method 1, as stated above, the deferred income would not be treated as debt.That’s my best guess, but, in practice, you may be able to think of numbers that may send it off in a different direction!AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In