• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Impairment Reversing on PPE involving government grants

Forums › ACCA Forums › ACCA SBR Strategic Business Reporting Forums › Impairment Reversing on PPE involving government grants

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by mrjonbain.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 9, 2015 at 1:33 pm #231781
    Neil
    Member
    • Topics: 4
    • Replies: 3
    • ☆

    Hello All,

    I was wondering if anyone can help me with a query regarding impairment reversing on PPE involving government grants. As you have two options when recognising government grants, treat as deferred income and release to the P/L or reduce the cost of asset.

    E.g. Building costs $10m and grant $1m then the initial cost would be $9m.

    Reduce cost of asset
    If you were to conduct an impairment in one year and then following year you want to reverse it, can you reverse it to the full before the government grant e.g. $10M or would it be restricted to $9M

    Thanks

    March 9, 2015 at 4:14 pm #231802
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2485
    • ☆☆☆☆☆

    Restricted to $9mn (what some it would have been taking any relevant depreciation into account).Using this method merely allows grant to be recognised indirectly through lower depreciation charges over the lifetime of asset’s existence.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mrjonbain on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • OmarAlbeity on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Salimbek909 on The nature and structure of organisations – ACCA Paper BT

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in