Government Grants Accounting Quiz
Welcome to the Government Grants Accounting Quiz Form. Test your knowledge of government grants accounting concepts and practices.
Which accounting standard primarily governs the accounting for government grants?
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IAS 20
IAS 12
IFRS 9
IAS 2
Government grants related to assets should be presented in the balance sheet as:
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Deferred income
Reduction of asset’s carrying amount
Both of the above are acceptable
Directly in equity
A government grant should be recognized in profit or loss:
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When there is reasonable assurance the entity will comply with conditions and receive the grant
Only after cash is received
At the end of the reporting period
When the grant is approved by the government
Shortly explain the difference between a grant related to income and a grant related to assets.
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Which of the following is NOT a type of government grant?
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Grant related to assets
Grant related to income
Grant for research and development
Grant for dividend payments
True or False: A forgivable loan from the government is accounted for as a government grant if there is reasonable assurance that the entity will meet the terms for forgiveness.
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True
False
When a government grant becomes repayable, the repayment is:
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Applied first against any unamortized deferred credit
Charged immediately to profit or loss
Recognized as a liability
Offset against future grants
Select all appropriate methods for presenting government grants related to income in the financial statements.
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Separately as other income
Deducted from the related expense
Directly in equity
Included in revenue
Fill in the blank: According to IAS 20, government grants should not be recognized until there is _______ assurance that the entity will comply with the conditions and the grant will be received.
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Name one disclosure required in the financial statements regarding government grants.
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