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Government Grants-IAS 20

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Government Grants-IAS 20

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.
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    Posts
  • February 21, 2020 at 5:32 pm #562654
    akashnundloll
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    Hello Sir,

    With reference to the lecture on IAS 20-Government grant., is it permissible to write off the grant against the cost of the NCA and depreciate the reduced cost.? i.e annual dep’n is ($10m- $2m)/10yrs= $800k.

    Thank you

    February 29, 2020 at 2:53 pm #563553
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7205
    • ☆☆☆☆☆

    Yes, this is an option within IAS 20 but the common treatment is to show the deferred income approach, as the netting off can be banned under local rules.

    Thanks

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