CAF-1 · Chapter 1 · Question 4 of 15
A local government grants Omega Corp a parcel of land at no cost, provided it builds a facility there. Under IAS 20, how can this non-monetary grant be initially measured?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) At either its fair value or a nominal amount.
Explanation
A non-monetary grant, such as land, can be recorded at fair value, or alternatively, at a nominal amount.
More IAS 20 Government Assistance and Grants MCQs
- Q6How should the repayment of a government grant related to income be accounted for?
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- Q8Which of the following is NOT required to be disclosed under IAS 20?
- Q9Alpha Ltd received government assistance in the form of a general improvement to the water supply network in its industrial area. How is…
- Q10A government grant that becomes receivable as compensation for expenses or losses already incurred, with no future related costs, should be: