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CA Final Ind AS 20 Government Grants and Ind AS 41 Agriculture — practice questions

Explore 51 free Ind AS 20 Government Grants and Ind AS 41 Agriculture questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 20 Government Grants and Ind AS 41 Agriculture questions and exercises with answers

Showing questions 1–30 of 51.

A grant is recognised only with reasonable assurance of what?Read the answer and worked solution →Which grants require the entity to buy or build long-term assets?Read the answer and worked solution →Under Ind AS 20, grants related to income are:Read the answer and worked solution →A forgivable loan is a grant if reasonable assurance exists that the entity will:Read the answer and worked solution →A free govt loan of Rs 10,00,000 has initial carrying value Rs 8,50,000. Grant benefit?Read the answer and worked solution →Government grants covered by which Standard are excluded from the scope of Ind AS 20?Read the answer and worked solution →Which term does Ind AS 20 say is sometimes used for government grants?Read the answer and worked solution →Government grants are recognised in profit or loss on what basis?Read the answer and worked solution →Grants on depreciable assets are recognised in profit or loss:Read the answer and worked solution →A grant compensates losses already incurred. When is it recognised?Read the answer and worked solution →Repayment of a grant related to income is applied first against:Read the answer and worked solution →Which is excluded from government assistance in Ind AS 20?Read the answer and worked solution →Which is an example of government assistance that cannot reasonably have a value placed upon it?Read the answer and worked solution →Once a government grant is recognised, any related contingent liability is treated under which Standard?Read the answer and worked solution →A Rs 6,00,000 grant on equipment with a 5-year life. Annual deferred income released?Read the answer and worked solution →Equipment of Rs 20,00,000 with 10-year life gets a Rs 4,00,000 grant. Annual grant income?Read the answer and worked solution →A Rs 10,00,000 asset grant is amortised over 5 years straight line. Deferred income left after 2 years?Read the answer and worked solution →A land grant needs a building to be erected. Over what period is it recognised?Read the answer and worked solution →How may a grant in a package with several conditions be recognised?Read the answer and worked solution →Receipt of a grant does not of itself prove what?Read the answer and worked solution →Aid requiring only operation in a certain region or industry is:Read the answer and worked solution →Recognising grants only on receipt conflicts with which assumption?Read the answer and worked solution →Under the capital approach, a government grant is recognised:Read the answer and worked solution →Which argument supports the income approach to grants?Read the answer and worked solution →Asset purchases and related grants appear in cash flows:Read the answer and worked solution →Which must be disclosed under Ind AS 20 about government grants?Read the answer and worked solution →Which of these is a consumable biological asset under Ind AS 41?Read the answer and worked solution →A dairy farm keeps cows for milk. Under Ind AS 41 these cows are what kind of asset?Read the answer and worked solution →Which event is cited as a natural risk that may need separate disclosure for farming entities?Read the answer and worked solution →Which commitments must an entity disclose for its biological assets?Read the answer and worked solution →

Worked practice questions

A grant is recognised only with reasonable assurance of what?

  1. Conditions met and grant receipt
  2. Cash received in the bank
  3. Board of directors approval
  4. A completed statutory audit
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Correct answer: A. Conditions met and grant receipt

Recognition needs reasonable assurance both that the attached conditions will be met and that the grant will actually be received.

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Which grants require the entity to buy or build long-term assets?

  1. Grants related to income
  2. Non-monetary grants only
  3. Forgivable loan grants
  4. Grants related to assets
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Correct answer: D. Grants related to assets

Asset-related grants are defined by a primary condition of acquiring long-term assets.

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Under Ind AS 20, grants related to income are:

  1. Paid by government in cash only
  2. Received by profit-making firms
  3. Repayable within one year
  4. Those other than asset grants
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Correct answer: D. Those other than asset grants

Income grants are simply every government grant that is not an asset-related grant.

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More Financialreporting topics

Ind AS 116 LeasesInd AS 36 Impairment of Assets and Ind AS 38 Intangible AssetsInd AS 24 Related Party Disclosures and Ind AS 108 Operating SegmentsInd AS 1 Presentation of Financial StatementsInd AS 12 Income TaxesInd AS 113 Fair Value MeasurementInd AS 109 Financial InstrumentsInd AS 23 Borrowing Costs and Ind AS 40 Investment Property