How should the repayment of a government grant related to income be accounted for?

Test yourself: pick an answer

• A)Applied first against any unamortized deferred credit related to the grant, with excess recognized in profit or loss.
• B)Treated as a prior period error and adjusted in retained earnings.
• C)Deducted directly from the carrying amount of related assets.
• D)Capitalized as a long-term liability.