Government Grant – Grant Income in SPL

Hi Chris,

In regards to the government grant for the purchase of depreciable asset, understood that each year there would be a Debit to deferred income under liability and Credit to Grant income in the SPL.

With reference to the simple pro-forma of the SPLOCI (page 13 of the revision notes), where should this ‘Grant income’ sit under? I believe in practice, there should be an ‘Other Income’ line above Operating profit?

Thanks in advance!

Regards,
Tim