微信扫一扫
实时资讯全掌握
| (b) Cantabria acquired an item of machinery for $1,300,000 on 1 October 2012. The machinery is expected to be used for 8 years and is expected to have a residual value of $100,000 after that time (at current prices). On 1 December 2012 the company received a grant of 40% of the original cost of the machine,having solicited the grant (and received government approval) before its purchase. The grant becomes repayable if the asset is sold or decommissioned within the first 4 years. The repayment reduces by 25% after each year since the asset's acquisition (so that no amount is repayable after 4 years). Cantabria has no intention of selling the plant during its useful life. Company policy is to choose accounting policies which maximise asset values. Required Prepare extracts from the financial statements of Cantabria for the year ended 30 September 2013 on the following two bases: – in accordance with IAS 20 Accounting for Government Grants and Disclosure of Government Assistance – applying the IASB Conceptual Framework definition of a liability. (9 marks) |