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.
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.