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Government grants

VVictoria7y ago
Hello! Could you help me with this standart, please? In which situation the whole amount of the grant is going to P/L in the first year and there are no liabilities at SFP? Thanks in advance!
P2-D2P2-D2Tutor7y ago#1
Hi, If you receive the grant in relation to revenue expenditure incurred, and not a capital grant, and the expense has been incurred in the current year then the grant is matched against the cost incurred in the year and so there is no outstanding liability. Thanks
TTolu7y ago#2
Please I have a question concerning government grants example 7..... 1) why did we debit deferred income with 200? 2) why was 200 given to current liabilities and 1600 to Non current liabilities? 3) why did we debit Bank and credit deferred income with $2mil? Thanks.
P2-D2P2-D2Tutor7y ago#3
Hi, Have you watched the video for this example? I think you'll find the answers to your questions in there. If not then come back and ask about the bits that aren't. Thanks
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