23 Questions
When repayment of a grant related to assets is recognised, what happens to the carrying amount of the asset?
It increases by the cumulative additional depreciation
What happens to the deferred income balance when repayment of a grant is recognised?
It decreases by the amount repayable
What is required to be disclosed in the financial statements regarding government grants?
All of the above
What is the purpose of disclosing the nature and extent of government grants in the financial statements?
To provide an indication of the government assistance received by the entity
What is ISO 9001:2015 Certified related to?
Government grants and disclosures
How should a government grant be recognised in the financial statements when it becomes receivable as compensation for expenses or losses already incurred?
In profit or loss of the period in which it becomes receivable
How are non-monetary grants typically measured?
At the fair value of the asset received
How are grants related to income presented in the financial statements?
As part of profit or loss, either separately or under a general heading
How are government grants related to assets presented in the statement of financial position?
By setting up the grant as deferred income or deducting the grant in arriving at the carrying amount of the asset
How is the repayment of a government grant related to income accounted for?
As a change in accounting estimate
What happens to the excess repayment of a government grant related to income?
It is recognised immediately in profit or loss
What type of government assistance is excluded from being considered a government grant?
Transactions with the government that cannot be distinguished from normal trading transactions
When can a government grant be recognised?
When the entity has reasonable assurance that it will comply with the conditions and receive the grant
How is a forgivable loan from the government treated?
As a government grant when there is reasonable assurance that the entity will meet the terms for forgiveness
How is the benefit of a below-market rate of interest loan measured?
As the difference between the initial carrying value of the loan and the proceeds received
How should government grants be recognised in profit or loss?
On a systematic basis over the periods in which the entity recognises as expenses the related costs
What is the main criterion for recognising a government grant?
There is reasonable assurance that the entity will comply with the conditions and receive the grant
What is the main objective of PAS 24?
To account for government grants and disclose government assistance
What is excluded from the scope of PAS 24?
All of the above
What is the nature of government grants according to PAS 20?
Assistance by government in the form of transfers of resources
What is the condition for receiving government grants?
Past or future compliance with certain conditions relating to the operating activities of the entity
What is the purpose of government grants according to PAS 20?
To provide resources to entities in return for past or future compliance with certain conditions
What is the scope of PAS 24?
Accounting for government grants and disclosing government assistance
This quiz covers the recognition and measurement of non-monetary grants in accounting, as per ISO 9001:2015 standards. It explores the treatment of government grants and assets received.
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