Which of the following is correct with respect to the accounting for re-payment of government grants?
A)Accounted for prospectively under IFRS.
B)Accounted for retrospectively under ASPE.
C)Accounted for prospectively under ASPE
D)Accounted for retrospectively under IFRS.

Question

Quizplus · Accepted Answer

According to ASPE, the repayment of government grants is accounted for prospectively. This means that the amount of the repayment is recognized as an expense in the period in which it becomes owing to the government, rather than adjusting the carrying amount of the asset or reducing the grant receivable. This is done to ensure consistency with the treatment of the original grant. Under IFRS, the accounting treatment may differ depending on the nature of the grant and the specific circumstances of the repayment.

Which of the Following Is Correct with Respect to the Accounting