DEC 2014 MCQ-7

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February 24, 2016 at 4:25 pm #301859
yushanshan
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Hi sir,
I just wonder the reason why choice C should not be recognised as ab asset. Thanks in advance.
February 25, 2016 at 7:33 am #301954
MikeLittle
Keymaster
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The plant is the asset – the grant is deferred income ie it’s an amount paid by government to help reduce the cost of the asset for the company

Imagine the double entry

Dr TNCA
Cr Cash

Dr Cash
Cr Government Grant
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