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Government Grants question

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Government Grants question

  • This topic has 0 replies, 1 voice, and was last updated 10 years ago by Benjamin.
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  • August 4, 2015 at 10:12 pm #265539
    Benjamin
    Participant
    • Topics: 1
    • Replies: 1
    • ☆

    The following is an extract of Errsea statement of financial position on 1/4/13

    Non – current liabilities
    Government Grants — 30,000

    Current Liabilities
    Government Grants — 10,000

    a government grant was received on its purchase and was being recognised in the income statement in equal amount over 4 years. in accordance with the terms of the grant, Errsea repaid 3,000 of the grant on the disposal on the related plant. an item of plant was acquired on 1/07/13 at a cost of 192,000. the plant qualify for government grant of 25%. the plant is to be depreciated on a straight line basis over 3 years. 11,000 of the 30,000 non current liability for government grant was at 1/04/2013 should be reclassified as a current liabilities as at 31/03/14.
    what will be the carrying value of the government grant under non-current liability at 31/04/13?
    what will be the carrying value of the government grant under current liabilities at 31/03/14?
    what will be the government grant in the income statement?

    kindly help a brother out, thanks

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