CAF-1 · Chapter 1 · Question 2 of 15
Beta Corp receives a government grant of Rs. 50 million specifically to purchase a specialized manufacturing plant. Which of the following is an acceptable method for presenting this grant in the statement of financial position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Present it as deferred income or deduct it from the carrying amount of the asset.
Explanation
Under IAS 20, grants related to assets must be presented in the statement of financial position either by setting up the grant as deferred income or by deducting the grant in calculating the carrying amount of the asset.
More IAS 20 Government Assistance and Grants MCQs
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- Q8Which of the following is NOT required to be disclosed under IAS 20?