PAS 20 Flashcards
Which of the following is not a government grant according to PAS 20?
A. Receipt of resources from the government subject to compliance with certain conditions
B. Receipt of financial aid in case of loss from a calamity
C. Forgiveness of an
existing loan from the government
D. Government procurement policy that is responsible
for a portion of the entity’s sales
D
Non-monetary grants are measured at
A. The fair value of the non-monetary asset.
B. Nominal amount
C. The amount of cash received or receivable
D. A or B
D
On January 1, 20x1, Entity A received a land with a fair value of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost ₱1,000,000. the building has an estimated useful life of 10 years and zero
residual value.
Required: How much is the income from government grant in 20x1 and 20x2, respectively?
20X1 = 0
20X2 = 20,000
On January 1, 20x1, Entity A received a land with a fair value of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost ₱1,000,000. the building has an estimated useful life of 10 years and zero
residual value.
Required: How much is the carrying amount of the building on December 31, 20x2 under the Gross
Presentation and Net Presentation?
gross = 100,000
net = 80,000
On January 1, 20x1, Entity A received a land with a fair value of ₱200,000 from the government conditioned on the construction of a building on the lot. Entity A started immediately the construction and it was completed on December 31, 20x1 for a total cost ₱1,000,000. the building has an estimated useful life of 10 years and zero
residual value.
Required: How much is the depreciation expense
recognized in 20x3 under Gross Presentation and Net Presentation?
gross = 100,000
net = 80,000
