Okyena Nti Company obtained a grant of $15 million from a Sekyere East District Assembly for an investment project to construct a manufacturing plant of at least $93 million. The principal term is that the grant payments relate to the level of capital expenditure. The secondary intention is to safeguard 450 jobs. The grant will have to be repaid pro-rata if there is under spending on capital. Twenty percent (20%) of the grant will have to be repaid if the jobs are not safeguarded within 18 months after the date of the last asset purchase. The plant was completed on 1 January 2020 at a total cost of $95 million. The plant had an expected useful life of 20 years and is depreciated on a straight line basis with nil residual value. Okyena Nti Company adopts the policy of setting government grant up as deferred income.

Required:

Show the relevant Income statement and Statement of financial position extracts in the 2020 final accounts.

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Okyena Nti Company obtained a grant of 15 million from a Sekyere East District Assembly for an investment project to construct a manufacturing plant T... View the full answer