CERTYNEX IFRS ACADEMY

An entity buys equipment and receives an asset grant to finance it. How do the purchase and the grant appear in the statement of cash flows?

As a single net flow, the grant being deducted from the acquisition payment.

As two separate flows: the acquisition payment and the receipt of the grant, whatever the presentation in the statement of financial position.

The receipt in operating flows, without the acquisition appearing.

An investing flow for the purchase, the grant being mentioned in the notes.