Why is deferred income considered a liability and also can you please shed some light on the issue of non current liability and current liability concerning deferred income?
Ask the Tutor ACCA FR
Concerning IAS 20 government grants lecture
Hi,
It is a liability due to the fact that if it was to be reclaimed by the government then it would be paid back.
As the money has been received for a period of more than a year at the reporting date we need to look at what it released in the following reporting period (current) and that to be released after the next period (non-current).
Thanks
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