In 2013 Sanford LTD received a government grant of $100,000 to be used for the purchase of a machine Sanford prepares its financial statements using IFRS The grant must be recognized a as revenue in 2013 b as a reduction in the cost of the machine c as a deferred income in the balance sheet and the...

Option d is correct answer d both mehods are acceptable As per IFRS20 Government gr ...

In 2013 Sanford LTD received a government grant of $100,000 to be used for the purchase of

Question:

In 2013 Sanford LTD received a government grant of $100,000 to be used for the purchase of a machine. Sanford prepares its using IFRS. The grant must be recognized
a. as revenue in 2013
b. as a reduction in the cost of the machine
c. as a deferred income in the and then recognized in the income statement systematically over the asset's useful life.
d. either b or c
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...