CERTYNEX IFRS ACADEMY

Four statements compare the two presentations of a grant related to an asset under construction. Which one is wrong?

With deduction, the asset's carrying amount is presented net of the grant.

With deferred income, the asset's carrying amount is reduced by the amount of the grant.

With deferred income, the grant is recorded as a liability and then released to profit or loss.

With deduction, the depreciation charge is calculated on the cost net of the grant.