In 2022, Sato Ltd. received a grant for 2 million to defray the cost of purchasing research

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In 2022, Sato Ltd. received a grant for ¥2 million to defray the cost of purchasing research equipment for its manufacturing facility. The total cost of the equipment is ¥10 million. Prepare the journal entry to record this transaction if Sato uses 

(a) The deferred revenue approach, 

(b) The reduction of asset approach.

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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