Page 68 - SBR Integrated Workbook STUDENT S18-J19
P. 68
Chapter 5
Example 2
Government grants
Vianne accounts for capital grants using the netting off approach.
On 30 June 20X1 Vianne purchases a low-emission machine for $10 million. It
receives a government grant of $1 million on the same day to contribute
towards the cost of this machine.
The machine is attributed a useful economic life of 5 years.
Discuss how the above events should be accounted for in the year
ended 31 December 20X1.
62
