Government Grant for a Foundry

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May 10, 2025 at 12:40 pm #717207
dwomoh.andrews
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The government has constructed a Foundry for our organization made up of the following cost:
Buildings GBP 1,000,000.00,
Laboratory Equipment GBP 100,000.00 and Transport Equipment GBP 20,000.00.
The fixed assets policy set the useful lives as follows:
Buildings 50 years, Laboratory Equipment 8 years and Transport Equipment 5 years.
Should we match the deferred income in each category over the useful lives?
May 18, 2025 at 5:59 pm #717329
P2-D2
Keymaster
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Hi,
Yes, under IAS 20 we would use the depreciation policy to spread the deferred income so as to match the income against the depreciation expense.
Thanks,
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