Government Grants-IAS 20

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February 21, 2020 at 5:32 pm #562654
akashnundloll
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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
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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.

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