government grant — OpenTuition Forums

Ddou15y ago

if there is revenue based grant, there are set off against expenses in SOCI, and present as other income. so how do we know which one will we prefer?

and als if there are RBG in the year the machine bought, how to do measurement?
cost=$5000
RBG=$1000
depn=4 years

how to record it in I/s and b/s?

thanks

MikeLittleTutor15y ago#1

1 - whichever the company policy states

2 - either Dr Cash, Cr Asset and calculate depreciation on the reduced asset value,
or
Dr Cash and Cr deferred income. Calculate depreciation on the gross value of the asset, but offset against that the appropriate proportion of the deferred income

Sign into reply to this topic.