How does IFRS require that government grants for property, plant and equipment (PPE)be recorded?
A)The government grant should be recorded using the income approach.
B)The government grant should be recorded using the capital approach.
C)The government grant should not be recorded using either the income or capital approach.
D)IFRS do not provide any guidance for recording government grant.

Question

Quizplus · Accepted Answer

Under IFRS, government grants related to assets such as property, plant, and equipment should be recorded using the income approach, where the grant is recognized as income over the periods necessary to match it with the related costs.

How Does IFRS Require That Government Grants for Property, Plant