Rolland acquired an asset costing 400,000 and deducted a grant of 100,000 from its carrying amount. Useful life: 4 years, straight-line depreciation with no residual value (case conventions). After 1 year, the grant becomes repayable in full. Calculate the catch-up depreciation, then the carrying amount to compare, in the impairment review, with what the asset can recover.
- Cost of the asset
- 400,000
- Grant deducted, now repayable
- 100,000
- Useful life
- 4
- Years elapsed before repayment
- 1