CAF-1 · Chapter 1 · Question 15 of 15
When a grant related to an asset becomes repayable, what happens to the cumulative additional depreciation that would have been recognized if the grant had not existed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) It is recognized immediately in profit or loss.
Explanation
The cumulative additional depreciation that would have been recognized in profit or loss to date in the absence of the grant must be recognized immediately in profit or loss.
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