4. SMEs account for government grants as follows (choose the incorrect statement): a. A grant that does not impose specified future performance conditions on the recipient is recognized in income when the grant proceeds are receivable. b. A grant that imposes specified future performance conditions on the recipient is recognized in income only when the performance conditions are met. c. Grants received before the revenue recognition criteria are satisfied are recognized as a liability. d. Government grants are measured at the fair value of the asset received or receivable or at nominal cost. 5. Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are accounted for by an SME as a. Outright expenses b. Capitalizable costs c. a or b d. a component of other comprehensive income
4. SMEs account for government grants as follows (choose the incorrect statement): a. A grant that does not impose specified future performance conditions on the recipient is recognized in income when the grant proceeds are receivable. b. A grant that imposes specified future performance conditions on the recipient is recognized in income only when the performance conditions are met. c. Grants received before the revenue recognition criteria are satisfied are recognized as a liability. d. Government grants are measured at the fair value of the asset received or receivable or at nominal cost. 5. Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are accounted for by an SME as a. Outright expenses b. Capitalizable costs c. a or b d. a component of other comprehensive income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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4. SMEs account for government grants as follows (choose the incorrect statement):
a. A grant that does not impose specified future performance conditions on the recipient is recognized in income when the grant proceeds are receivable.
b. A grant that imposes specified future performance conditions on the recipient is recognized in income only when the performance conditions are met.
c. Grants received before the revenue recognition criteria are satisfied are recognized as a liability.
d. Government grants are measured at the fair value of the asset received or receivable or at nominal cost.
5. Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are accounted for by an SME as
a. Outright expenses
b. Capitalizable costs
c. a or b
d. a component of other comprehensive income
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