CERTYNEX IFRS ACADEMY

An entity receives an intangible asset free of charge from the State by way of a government grant. Which initial measurements are permitted?

Fair value only, with both the asset and the grant recognised at that amount on the date of the award

Either the asset and the grant at fair value, or the asset at a nominal amount plus directly attributable expenditure

A nil amount only, since no price was paid to the State to obtain the asset

The carrying amount of the asset in the books of the authority that granted it