cash flow

Statements of financial position as at: 30 September 20X5 30 September 20X4
$’000 $’000
Property, plant and equipment (note (ii)) 10,600 15,800

Non–current liabilities
Finance lease obligations (note (ii)) 2,000 1,700

Deferred tax 200 500
Government grants (note (ii)) 1,400 900

current liablity
Government grants (note (ii)) 600 400
Finance lease obligations (note (ii)) 900 800

(ii) The details of the property, plant and equipment are:
Acc’d Carrying
Cost depreciation value
$’000 $’000 $’000
At 30 September 20X4 20,200 4,400 15,800
At 30 September 20X5 16,000 5,400 10,600
During the year Tabba sold its factory for its fair value $12 million and agreed to rent it back, under an
operating lease, for a period of five years at $1 million per annum. At the date of sale it had a carrying value
of $7.4 million based on a previous revaluation of $8.6 million less depreciation of $1.2 million since the
revaluation. The profit on the sale of the factory has been included in operating profit. The surplus on the
revaluation reserve related entirely to the factory. No other disposals of non–current assets were made
during the year.
Plant acquired under finance leases during the year was $1.5 million. Other purchases of plant during the
year qualified for government grants of $950,000.
Amortisation of government grants has been credited to cost of sales

sir regarding to govt grants what will go to cash flow and what should be treated as sale amount to plant and profit