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How are you?
I hope you are safe and well.
In case of releasing the government grant over the respective asset useful life as you did in your lecture through the following J.V.
Dr:deferred income $xxxx
My question is as follow,
Is the amount of grant income which is in the credit side either must be presented as separate line in the profit or loss statement or disclosure is enough or must be presented as separate line and disclosed as well?
Thanks in advance.
There are two treatments in the financial statements. You can either show it as deferred income or net it off the cost of the asset. The preferred treatment is to show it as deferred income.