Page 460 - F1 Integrated Workbook STUDENT 2018

Chaptter 25

Chaapter 113

Exxampple 1

An entity opens a new ffactory andd receives a governmment grant oof $15,0000 in
respect of cappital equipmment costing $100,000. It depreciates all plant and
macchinery at 20% pa sttraight-line.
Shoow the stattement of pprofit or losss and stattement of ffinancial poosition
extrracts in resspect of thee grant in tthe first yeear under bboth methoods.
Sollution

Metthod 1: Deeduct fromm asset
Staatement off profit or loss extraact

$
Deppreciation (below) (17,000)

Staatement off financial position eextract
$
Nonn-current aassets:
Plant & machinery
(100,000 – 155,000) 8 85,000
Acccumulated depreciation
(85,000 × 20%%) (17,000)
–––––
6 68,000

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