alleryStart learning →Under Ind AS 20, grants related to income are:
APaid by government in cash only
BReceived by profit-making firms
CRepayable within one year
DThose other than asset grants
Answer & Solution
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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Related questions
When valuing a below-market government loan benefit, what must the entity consider?Why do income approach supporters reject crediting grants directly to equity?Which view backs the income approach as per Ind AS 20?How many broad approaches to accounting for government grants does Ind AS 20 describe?Why is information on government assistance useful to financial statement users?Why does government typically give grants according to Ind AS 20?Which grape-related step is outside Ind AS 41?Which activity is listed as agricultural activity in Ind AS 41?