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.
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8y ago#1"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?
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