Podcast
Questions and Answers
How are monetary grants typically measured?
How are monetary grants typically measured?
- At the carrying amount of loan payable to government at a below-market rate of interest
- At the nominal amount or zero, plus direct costs incurred in preparing the asset for its intended use
- At the fair value of non-monetary asset received
- At the amount of cash received or the fair value of the amount receivable (correct)
What is the main concept in accounting for government grants?
What is the main concept in accounting for government grants?
- Matching Concept (correct)
- Going Concern Concept
- Accrual Concept
- Cash Concept
How are government grants related to assets presented in the statement of financial position?
How are government grants related to assets presented in the statement of financial position?
- Only gross presentation is allowed
- Either gross or net presentation is allowed (correct)
- Government grants related to assets are not presented in the statement of financial position
- Only net presentation is allowed
How are grants related to income presented in the income statement?
How are grants related to income presented in the income statement?
What happens when a government grant is recognized as income?
What happens when a government grant is recognized as income?
What is the accounting treatment for a government grant that becomes repayable?
What is the accounting treatment for a government grant that becomes repayable?
What is the fair value of the land received by Entity A from the government?
What is the fair value of the land received by Entity A from the government?
What is the total cost of constructing the building by Entity A?
What is the total cost of constructing the building by Entity A?
What is the estimated useful life of the building?
What is the estimated useful life of the building?
What is the income from the government grant in 20x1?
What is the income from the government grant in 20x1?
What is the depreciation expense recognized in 20x3?
What is the depreciation expense recognized in 20x3?
What is the carrying amount of the building on December 31, 20x2 under the gross presentation?
What is the carrying amount of the building on December 31, 20x2 under the gross presentation?
What is the carrying amount of the building on December 31, 20x2 under the net presentation?
What is the carrying amount of the building on December 31, 20x2 under the net presentation?
When does the building start to be depreciated?
When does the building start to be depreciated?
What is the residual value of the building?
What is the residual value of the building?
