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Ind AS 20 Govt Grants - Illustration 6

Financial Reporting

1) In this question the difference of 50000 will be treated as what.?. 2) Also i have a doubt whether the grant should be recorded at same value the land is recognised? 3) Also in alternative method, the entry will be what?

Rahel Rayu

CA Final

★ 3K+

29-Nov-24 20:17

202

Answers (5)

Also , for grant relating to revenue in respect of future expenses.... first we will recognise the grant in Deffered Income A/c and tranfer to P&L over the period of expense ratio? .... and in presentation part is question intends to show how these deffered income will be shown in P&L ie. Can be shown as grant income or can be deducted from the related expense? Am i right. I just confused. Is there another way to recognise revenue grant relating to future expense?

Thread Starter

Rahel Rayu

CA Final

★ 3K+

29-Nov-24 22:39

Fair value of Land - 5,00,000 Amount paid - 50,000 Government Grant - 4,50,000 The difference of 50,000 is amount paid and will be credited to the bank account.

CA Suraj Lakhotia

Admin

02-Dec-24 17:41

We are not receiving the land free of cost. So Grant is not equal to land value.

CA Suraj Lakhotia

Admin

02-Dec-24 17:41

If land is recognised at amount paid Dr. Land 50,000 Cr. Bank 50,000

CA Suraj Lakhotia

Admin

02-Dec-24 17:42

Thread Starter

Rahel Rayu

Your understanding is correct.

CA Suraj Lakhotia

Admin

02-Dec-24 17:42

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