Scribd Logo
Upload

Welcome to Scribd!

  • 617 views

    VALIX - IA 1 (2020 Ver.) Government Grant

    Uploaded by

    Ariean Joy Dequiña
    The document contains journal entries for accounting for government grants under different standards. It shows entries for: 1) Recognizing a cash grant and deferred income over the useful life of an asset (PAS 20). 2) Recognizing cash, a building asset, depreciation, and deferred income (IFRS). 3) Recognizing cash, a building asset, depreciation, and deferred government grant income (IFRS). 4) Comparing the deferred income and deduction from asset approaches to grants (IFRS). 5) More journal entries for the deferred income and deduction from asset approaches (IFRS).

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    VALIX - IA 1 (2020 Ver.) Government Grant

    Uploaded by

    Ariean Joy Dequiña
    617 views9 pages
    The document contains journal entries for accounting for government grants under different standards. It shows entries for: 1) Recognizing a cash grant and deferred income over the useful life of an asset (PAS 20). 2) Recognizing cash, a building asset, depreciation, and deferred income (IFRS). 3) Recognizing cash, a building asset, depreciation, and deferred government grant income (IFRS). 4) Comparing the deferred income and deduction from asset approaches to grants (IFRS). 5) More journal entries for the deferred income and deduction from asset approaches (IFRS).

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document contains journal entries for accounting for government grants under different standards. It shows entries for: 1) Recognizing a cash grant and deferred income over the useful life of an asset (PAS 20). 2) Recognizing cash, a building asset, depreciation, and deferred income (IFRS). 3) Recognizing cash, a building asset, depreciation, and deferred government grant income (IFRS). 4) Comparing the deferred income and deduction from asset approaches to grants (IFRS). 5) More journal entries for the deferred income and deduction from asset approaches (IFRS).

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    617 views9 pages

    VALIX - IA 1 (2020 Ver.) Government Grant

    Uploaded by

    Ariean Joy Dequiña
    The document contains journal entries for accounting for government grants under different standards. It shows entries for: 1) Recognizing a cash grant and deferred income over the useful life of an asset (PAS 20). 2) Recognizing cash, a building asset, depreciation, and deferred income (IFRS). 3) Recognizing cash, a building asset, depreciation, and deferred government grant income (IFRS). 4) Comparing the deferred income and deduction from asset approaches to grants (IFRS). 5) More journal entries for the deferred income and deduction from asset approaches (IFRS).

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 9

    GOVERNMENT GRANT

    PROBLEM 24-1 (PAS 20)

    1. JOURNAL
    ENTRIES

    First Year

    Cash 30 000 000


    Deferred Grant Income 30 000 000

    Deferred Grant Income 3 000 000


    Grant Income 3 000 000
    ( 2/20 x 30 000 000)

    2 000 000
    Environmental Expenses 2 000 000
    Cash

    2. JOURNAL
    ENTRIES
    First Year

    Cash 40 000 000


    Deferred Grant Income 40 000 000

    Building 50 000 000


    Cash 50 000 000

    Depreciation 2 500 000


    Accumulated Depreciation 2 500 000
    (50 000 000 / 20)

    Deferred Grant Income 2 000 000


    Grant Income 2 000 000
    (40 000 000 / 20)

    3. Journal Entries

    First Year

    Cash 50 000 000


    Deferred Grant Income 50 000 000
    Building 80 000 000
    Deferred Grant Income 80 000 000

    Depreciation 3 200 000


    Accumulated Depreciation 3 200 000
    (80 000 000 / 25)

    4. JOURNAL ENTRY

    Cash 10 000 000


    Grant Income 10 000 000

    PROBLEM 24 - 2 (IFRS)
    JOURNAL ENTRIES

    Land 12 000 000


    Deferred Grant Income 12 000 000

    Land Improvement 2 000 000


    Cash 2 000 000

    Deferred Grant Income 2 400 000


    Grant Income 2 400 000
    (2/10 x 12 000 000)

    PROBLEM 24 - 3 (IFRS)
    JOURNAL ENTRIES
    12 000 000
    Cash
    Deferred Grant Income 12 000 000

    Building 9 000 000


    Cash 9 000 000
    (3/4 x 12 000 000)

    Depreciation 900 000


    Accumulated
    Depreciation 900 000
    (9 000 000 / 10)

    Deferred Government
    Grant 1 200 000
    Grant Income 1 200 000

    Tuition Expense 600 000


    Cash 600 000

    PROBLEM 24 - 4 (IFRS)

    JOURNAL ENTRIES

    DEFERRED INCOME
    APPROACH

    Machine 7 000 000


    Cash 7 000 000

    Cash 1 000 000


    Deferred Grant Income 1 000 000

    Depreciation 1 300 000


    Accumulated Depreciation 1 300 000
    (7 000 000 - 500 000 / 5 years)

    Deferred Grant Income 200 000


    Grant Income 200 000
    (1 000 000 / 5 years)
    DEDUCTION FROM ASSET APPROACH

    Machine 7 000 000


    Cash 7 000 000

    Cash 1 000 000


    Equipment 1 000 000

    Depreciation 1 100 000


    Accumulated Depreciation 1 100 000

    Acquistion Cost 7 000 000


    Government Grant -1,000,000
    Net Cost 6 000 000
    Residual Value -500,000
    Depreciable Amount 5 500 000

    ANNUAL DEPRECIATION 1 100 000


    (5 500 000 / 5 years)
    PROBLEM 24 - 5 (IFRS)

    JOURNAL ENTRIES
    DEFERRED INCOME
    APPROACH

    Machine 5 400 000


    Cash 5 400 00

    Cash 400 000


    Deferred Grant Income 400 000

    Depreciation 520 000


    Accumulated
    Depreciation 520 000

    Deferred Grant Income 40 000


    Grant Income 40 000

    DEDUCTION FROM ASSET APPROACH


    Machine 5 400 000
    Cash 5 400 000

    Cash 400 000


    Equipment 400 000

    Depreciation 480 000


    Accumulated
    Depreciation 480 000

    You might also like