Friday, 20 March 2020

CALCULATIONS ON GOVERNMENT GRANT - IAS 20



Example 1:
Do IT BETTER Limited opens a factory in Koforidua and receives $15,000.00 government grant for capital equipment whose cost is $100,000.00. All plant and machinery in DO IT BETTER is depreciated using 20% straight line.

Required
Prepare an extract of statement of profit or loss and statement of financial position for the grant in the first year under both approaches prescribed by IAS 20.






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