Government Grant (Deduct from the Asset)

Dear Chris, I hope you are well and safe, thank you so much for your nice explanation and your humour I do enjoying watching your lectures and study ACCA. In respect of the government grant we have to method as per IAS 20 for capital Asset are as follow, 1- Deduct the government grant of the assets acquired. 2- treating the government grant as deferred income. in regarding to method number 2 I understand it very well, but regarding the first treatment it's somehow confused for example it's mentioned in Kaplan textbook the following Given information, government grant=$15000 and had been used to buy capital equipment as follow, Asset acquired =$100000 Estimated useful life = 5 years. Required The presentation of (SFP) and (SPL) at the end of the year. **** The solution as per my understanding in details as follow, the recognition of the government grant is as follow Dr Bank $15000 Cr Deferred income (SFP) $15000 the entry of the asset recognition Dr PPE(SFP) $85000 Dr Deferred income(SFP) $15000 as liability account Cr Bank $100000 The annual depreciation of the year =85,000/5yrs = $17,000 Dr Depreciation Expense $17,000 Cr Accumulated Depreciation $17,000 the presentation of the financial position Non-current assets. PPE (C.V) $68,000 The presentation of the profit or loss and OCI Depreciation expense(SPL) $17,000 Could you check out my workout, please? and tell me correction. Thank you in advance.