CERTYNEX IFRS ACADEMY

Pélissier receives EUR 120,000 from a region to fund a three-year research programme whose costs are incurred in equal amounts each year (case convention). Which treatment is consistent with the income approach?

Take the EUR 120,000 directly to equity on receipt.

Recognise the EUR 120,000 as income in the first year.

Take EUR 40,000 a year to profit or loss, in line with the research costs.

Wait until the end of the research programme to take the whole grant to profit or loss.