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Government grant (capital grant)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Government grant (capital grant)

  • This topic has 1 reply, 2 voices, and was last updated 12 months ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • July 3, 2021 at 8:03 pm #626927
    7fsa
    • Topics: 56
    • Replies: 40
    • ☆☆

    Dear Chris,

    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 $xxxx
    Cr:grant income$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.

    July 5, 2021 at 8:24 pm #627044
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6119
    • ☆☆☆☆☆

    Hi,

    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.

    Thanks

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