For example, if a piece of land is granted on the condition that a building is erected

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For example, if a piece of land is granted on the condition that a building is erected on it, then the grant should be recognized as income over the building's life. A piece of land is granted by the government in 2017 IF the company makes an ETP on it to process all the wastewater being dumped by various factories and plans to charge the factories for its use. The building construction starts in 2019 and the plant is expected to last for 10 years. The fair value of the land is estimated at 5,000,000. How and when would this be reflected in the books of accounts of the company?

Posted Date: Nov 24, 2021 12:00 PM

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For example, if a piece of land is granted on the condition that a building is erected

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ANSWER Books of money owed include data maintained in respect of the amount of cash received and expended and matters in relation to which the receipt ... View the full answer

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