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Non-current assets, agriculture and inventories
Government grants
2.1 Summary of recognition and measurement
Recognise when
reasonable assurance
GRANTS conditions will be
complied with and
grant will be received
Revenue Capital
grants grants
Relate to Relate to
operating asset
costs purchases
Match in P/L Match in P/L
with related with related
costs depreciation
Deferred income Netting off
approach approach
Record grant as Deduct grant from
deferred income cost of asset
Further detail can be found in Section 2 of Chapter 5 in your Study Text.
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