IAS 20Chapter 6Lesson 1
Grants related to assets: deferred income or deduction
Step 1 of 10Learning objectives
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An asset grant is presented in the balance sheet either as deferred income taken to profit or loss, or as a deduction from the carrying amount of the asset; the net profit or loss is the same.
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Learning objectives
- Distinguish the two permitted presentations and their effects on the asset, depreciation and profit or loss.
- Record an asset grant and its release under each method.
- Calculate the net cost, the reduced depreciation and the carrying amount after deduction.