When deducting a government grant to arrive at the carrying amount of a related asset, which of the following is true?

Question

Quizplus · Accepted Answer

When a government grant is related to an asset, it is often recognized as a deferred income and then recognized in profit or loss as a reduction of depreciation expense over the useful life of the asset. This approach spreads the benefit of the grant over the periods in which the asset is expected to be used.

When Deducting a Government Grant to Arrive at the Carrying