When accounting for and reporting government grants relating to assets,the entity should record the grant directly as an increase in shareholders' equity.

Question

Quizplus · Accepted Answer

The entity should record the government grant as deferred income and recognize it in the income statement over the useful life of the related asset. This is in accordance with the requirements of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance.

When Accounting for and Reporting Government Grants Relating to Assets,the