alleryStart learning →Government grants are recognised in profit or loss on what basis?
AWhen the cash is received
BOnly on disposal of the asset
CAt the end of the lease term
DSystematic, matching related costs
Answer & Solution
Correct answer: D. Systematic, matching related costs
The income approach requires recognition over the periods in which the related costs are expensed.
Keep practising Ind AS 20 Government Grants and Ind AS 41 Agriculture
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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?