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C21 - MFRS 120 Acct For Gov Grants
C21 - MFRS 120 Acct For Gov Grants
Buy PPE
– RM1
mil
Receive
GG –
RM500,0
00
After a
year
SOFP as at Dec 19
RM
NCA
PPE (1,000,000 – 500,000) 500,000
- Acc dep (50,000)
450,000
Bank
SOPL for the year Dec 19
RM
Income
Expenses
Depreciation (50,000)
Profit/(Loss) before tax (50,000)
DEFERRED INCOME APPROACH
unamortised
SOPL for the year ended Dec 19
Non-monetary government grants
(para 23)
Government grants (para 7)-
recognition criteria
Revocable/Repayable Grants
Government Assistance
• Definition of government assistance:
‘Action by government designed to provide an economic benefit
specific to an entity or range of entities qualifying under certain
criteria’
• Does not include benefits provided only indirectly through action
affecting general trading conditions, such as the provision of
infrastructure in development areas or the imposition of trading
constraints on competitors.’
• Not quantified and introduced into the financial statements.
• Examples of such assistance whose value cannot be reasonably
measured are technical or marketing advice and provision of
guarantees.
Disclosures
1. Accounting policy adopted for government grants, including the
methods of presentation adopted in the financial statements
2. Nature and extent of government grants recognised in the
financial statements and other forms of government assistance
received
3. Unfulfilled conditions and other contingencies attached to
government assistance that has been recognised.