On January 2, 2011, Brand Company received a grant P60,000,000 to compensate if for cost it incurred in planting trees over a period of five years. Brand Company will incur such cost in manner:    Years       2011            2012            2023            2014            2015  Cost     2,000,000     4,000,000     6,000,000     8,000,000     10,000,000   Actual cost incurred in planting trees showed P2,000,000 and P4,000,000 in years 2011 and 2012, respectively. However, in 2013 up to year 2014, the company has stopped planting trees.   Due to non-fulfillment of its obligation , the government is demanding an immediate repayment of the grant in th amount of P50,000,000 which is considered reasonable.   1. What amount should be recognized as an expense related to the repayment of grant? 2. What amount of income should Brandy Company recognize at the end year of 2014?

Green Pastures received a grant of P60 million to compensate it for costs incurred in planting Narra trees over a period of 5 years. Green Pastures will recur such costs in this manner:  Year          Costs 1                2M 2                4M 3                6M 4                8M 5                10M Total costs thus incurred will aggegate P30 M. Required: Based on the provisions of PAS 20, Government Grants, how should Green Pastures treat the “grant” in the books?

Example 2 Kaokodi Ltd received a grant of GHC60 million to compensate it for costs it incurred in planting trees over a period of five years. Kaokodi Ltd will incur such costs in this manner: Year Costs GHC'000 1 2,000 2 4,000 6,000 4 8,000 10,000 Total costs thus incurred will aggregate to GHC30 million, whereas the grant received is GHC60 million. Reguired: Based on the provisions of IAS 20, how would Kaokodi Ltd treat the "grant" in its books? Example 3 Nyansapo Ltd received a grant of GHC150 million to install and run a solar energy system in an economically backward area. Nyansapo Ltd has estimated that such a system would cost GHC250 million to construct. The secondary condition attached to the grant is that the entity should hire labour in the local market (i.e., from the economically backward area where the windmill is located) instead of emploving workers from other parts of the country. It should maintain a ratio of 1:1 local worker to workers from outside in its labor force…

On January 1, 2015, MERKS Company received a grant of P25,000,000 form the American government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over four year, respectively, P4,000,000, P2,000,000, P8,000,000 and P6,000,000. What amount should be recognized in 2015? *         a. 25,000,000       b.  2,500,000       c.  5,000,000       d.7,500,000

On January 1, 2021 the national government provided a grant to Brgy ACYFA2 amounting to 24,000,000 intended to contrustruct a new barangay hall provided that the said construction was finished August 15, 2021 for an amount of P32,000,000 with best estimate of the useful life at 40 years Based on the problem, what is the net effect on the profit or loss for the year 2023? Ans: -200,000 *need solution*

On January 1, 2011, Sagada Company received a grant of P25,000,000 from the American government in order to defray safety and environmental costs within the area where the entity is located. The safety and environmental costs are expected to be incurred over four years, respectively, P4,000,000, P3,000,000, P5,000,000 and P8,000,000. How much income from the government grant should be recognized in 2011?     A. 20,000,000   B. 4,000,000   C. 30,000,000   D. 6,000,000

how much Loss on Repayment of the Grant will be recorded on January 1, 2022?

On January 1, 2017, Humble company received a government grant of 60,000,000 to compensate for costs to be incurred in planting trees over a period of 5 years.  The entity will incur such costs at 2,000,000 for 2017, 4,000,000 for 2018, 6,000,000 for 2019, 8,000,000 for 2020, and 10,000,000 for 2021.    What amount of income from the government grant is recognized for 2017?

On January 2, 2020. Kimchi Company received a grant of 60,000,000 to compensate it for cost it incurred in planting trees over a period of five years. Kimichi Company will incur such cost in this manner. 2020 - 2,000,000 2021 - 4,000,000 2022 - 6,000,000 2023 - 8,000,000 2024 -10,000,000 what amount of income should Kimchi company recognize at the end of year 2023?

Transaction ESurgimed Ghana Ltd. received a government grant of GH¢300,000 for acquiring plant and machinery costing GH¢1,500,000 during 2017 financial year and having a useful life of 10 years. The grant received was credited to deferred income in the statement of financial position as a result of adopting the deferred income approach of accounting for government grant. During the 2020 financial year, the company had to refund the grant to the government due to non-compliance of the conditions laid down for the grant. RequiredExplain to directors of Surgimed Ghana Ltd. what should be the appropriate treatment of the refund of the grant. Explain the effect on the cost of the plant and machinery, and the amount of depreciation thatshould be charged during the 2020 financial year financial statements.