The fair value of an asset acquired through a government grant can be recorded as deferred revenue and recognized as income over the life of the asset.

Question

Quizplus · Accepted Answer

According to accounting standards, if an asset is acquired through a government grant at fair value, it can be recorded as deferred revenue and recognized as income over the life of the asset. This is because the grant is not given as an outright cash payment but rather as a non-monetary asset, which should be accounted for in this manner.

The Fair Value of an Asset Acquired Through a Government