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Thanks for all your previous replies really appreciate it,
One question that was left in my last thread was that what amount will we record finance lease liability since Pv of minimum lease payments and fair value of asset is one and the same,
Secondly in IAS 20 , sir you said that if it has conditions attached we disclose it as a contingent liability, but will the process of treating it as a deferred income and releasing it over life of asset and grant continue?
We record at the lower of fair value and present value of minimum lease payments
If these two values are the same … then we record at that value!
“… will the process of treating it as a deferred income and releasing it over life of asset and grant continue”
Yes, and that’s why it’s only a contingent liability note – it indicates the possibility (not probability) of having to repay that grant
But deferred income and annual release goes on “as normal”
OK?
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