BPP Black Friday sale!

40% discount on all BPP books specially for OpenTuition students!
Get it here >>

IAS 20

This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
January 9, 2018 at 8:18 am #427962
adarsh1997
Participant
- Topics: 646
- Replies: 282
Hello Mike!
Could you explain the reasoning behind the netting off of the cost of an asset against a grant received?
-Let’s say an asset costs $15M and a grant of $5M is received. If we ‘net off’ those 2, then we will get $10M which will be shown in the SFP. However, the ‘real’ cost is $15M. Are we not unfairly representing the item?
-Please clarify this and also locate where I am getting things wrong.
Thanks in advance.
January 9, 2018 at 8:34 am #427967
MikeLittle
Keymaster
- Topics: 27
- Replies: 23350
“However, the ‘real’ cost is $15M.”
How do you rationalise that statement?!!!
If you buy an item and immediately receive some money BECAUSE YOU BOUGHT THAT ITEM, how is the “real” cost the gross amount?
OK?
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

The topic ‘IAS 20’ is closed to new replies.