Other Reporting Issues

Question 1

What does Government grant mean?

Answer 1

Money from the government

Question 2

What are the two types of Government grant?

Answer 2

1) Revenue Grant

2) Capital Grant

Question 3

Where do Revenue Grants get recognized?

Answer 3

I/S

Question 4

Where do Capital Grants get recongised?

Answer 4

SFP and any differences( I.e. depreciations) get recognised in I/S

Question 5

What does Revenue grants mainly focus on?

Answer 5

Expenses

Question 6

What does capital grant focusses on?

Answer 6

Assets

Question 7

What is biological assets?

Answer 7

Assets who are living animals or plants

Question 8

How to measure biological asset?

Answer 8

FV - CTS ( Excluding Finance cost and tax)

Question 9

When the changes in FV are caused by growth and prices, what is normally encouraged?

Answer 9

To disclose them seperately

Question 10

If there any changes in FV in biological asset, how do we treat this?

Answer 10

Any changes in FV every year, the differences will be recognised to I/S

Question 11

If there are government grants in agricultural, what do we do?

Answer 11

1) Treat as I/S ( As change in FV go to I/S in biological asset)
2) When receivable
3) When conditions are met

Question 12

When there is a change in accounting policy, what do you need to make sure?

Answer 12

1) Change the comparative

2) Change the opening reserves

Question 13

When there is a prior error made, what do you need to do?

Answer 13

1) Chnage the comparative

2) Change the opening reserve

Question 14

When there is a change in depreciation, what do you need to do?

Answer 14

1) Change Prospectively

This is known as change in accounting estimate.