- 8 Marks
FR – Mar/Jul 2020 – L2 – Q4a – Accounting for Government Grants (IAS 20)
Explain types and methods of government grants under IAS 20 and prepare extracts of financial statements for Gbogbonise Enterprises.
Question
a. The Federal Government of Nigeria is committed to improving Medium, Small and Micro Enterprises (MSME) programme. In view of this, the government issued directives to the Central Bank of Nigeria (CBN) to give grants to MSME that has at least 25% local equity participation.
Required:
(i) Explain the TWO types of grant/government assistance that are recognised by IAS 20 on accounting for government grants and disclosure of government assistance.
(ii) Outline the TWO methods of presenting grant/government assistance that are recognised by IAS 20 – Accounting for Government Grants and Disclosure of Government Assistance. (8 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Accounting Policies, Financial Statements, Government Grants, IAS 20, MSME
- Level: Level 2
- Topic: Accounting for Government Grants
- Series: MAR/JULY 2020
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