IAS 20Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 20This topic has 1 reply, 2 voices, and was last updated 5 years ago by P2-D2.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts April 25, 2019 at 7:43 am #514055 AutumnMemberTopics: 3Replies: 0☆Hi,could you tell me what happens if the government awards a company an asset, such as a licence for 10 years?would you recognize a liability as differed income and move to the profit and loss over the life?Also what happens if a few years down the line this asset gets revoked? do you just remove the liability?thanks in advance April 25, 2019 at 8:35 pm #514153 P2-D2KeymasterTopics: 4Replies: 7082☆☆☆☆☆Hi,Yes, you would treat in the same way as you would with PPE.If it is then revoked then we would remove any remaining deferred income and then if there isn’t enough the excess would go through profit or loss.ThanksAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In