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    Question

    What is the accounting treatment for government grants

    related to assets under Ind AS?
    A Recognise grant as income immediately in equity Correct Answer Incorrect Answer
    B Deduct grant from carrying amount of asset or recognise as deferred income and allocate to P&L over useful life Correct Answer Incorrect Answer
    C Treat grant as contingent asset only Correct Answer Incorrect Answer
    D Recognise grant as revenue only when received in cash Correct Answer Incorrect Answer
    E Grants are treated as investment Correct Answer Incorrect Answer

    Solution

    Ind AS 20: either reduce asset carrying amount or present as deferred income.

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