in IAS 20 - Accounting for Government Grants by
can i classify it as an Asset??if yes then what value??
can i treat as income at value equal to fair market rent every year??

Please log in or register to answer this question.

1 Answer

0 like 0 dislike
by
If it is a government grant then IAS 20 shall apply. IAS 20 a grant relating to assets may be presented in one of two ways:
· As deferred income (and released to profit or loss when related expenditure impacts profit
or loss)
· By deducting the grant from the asset’s carrying amount.

If it is not a government grant you may follow SIC-15 Operating Leases: Incentives which says:

All incentives for the agreement of a new or renewed operating lease are recognised as an integral part of the *** consideration agreed for the use of the leased asset, irrespective of the incentive’s nature or form or the timiof payments

The lessee recognises the aggregate benefit of incentives as a reduction of rental expense over the lease term, on a straight-line basis unless another systematic basis is representative of the time pattern of the lessee’s benefifrom the use of the leased asset

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers on Accounting-related questions.

Get AccountantAnswer App

Categories



...