How shall an investment share granted by the Government be recorded ?!

Question

An investment share in a public Company is transferred on the shape of GRANT from Government (Previous owners of shares to a Limited Liability Company (Current owner of Shares), how the Investment grant is recorded in the books of grantee in case it was Conditional Grant or non-conditional

Answer 1

Ideally, it should be recognized by setting up the grant as deferred income (a liability). Deferred income must be recognized in the income statement on a systematic and rational basis over the useful life of the asset.

Dr. Investment
Cr. Deferred income – government grant