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hello
CAn anyone clarify this for me please ? Is the capital approach for govt grants and grants related to assets the same thing? or is it a sub part of the income approach>?well sir if its the same then im really confused about it !! As you already know there are two types of accounting treatments for grants related to assets that is deducting the grant from the cost of the asset while the other being the deferred income method !!
However i have read in the BPP book that under the capital approach ( here your saying its the same as grants related to assets ), the whole grant is credited to shareholders’ interests. I dont really see the relation between these two but if they really are the same could you explain please?Also i have an additional question what would be the basic debit and credit for this type of transaction if we do not spread the grant over the years ? debit cash credit capital ( for capital approach)
debit cash credit pl ( y approach) ?
im i correct? :Sthank you in advance
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