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Journal entryAdvancedVariant — group VG.IAS38.000307Published

Question · Acquisition by way of a government grant

The fishing cooperative Morvenn is allocated multi-year fishing quotas free of charge by the authorities, by way of a government grant, with a fair value of 280,000. It opts to recognise the asset and the grant at fair value, the grant being presented as deferred income under its accounting policy. Record the allocation of the quotas.

Fair value of the quotas allocated
280,000
Your answer
  1. Line 1

    Account Intangible assets — fishing quotas

  2. Line 2

    Account Deferred income — government grant

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