CERTYNEX IFRS ACADEMY

A municipality transfers a plot of land to an entity free of charge, which is a non-monetary grant. At what amount does IAS 20 allow the land and the grant to be recognised?

At the fair value of the land for both, or at a nominal amount for both.

At fair value for the land and at zero for the grant.

At the historical cost incurred by the municipality, with the grant not recognised.

At fair value for the grant, with the land left off the balance sheet.