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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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