ACCA · Question 22 · Financial Reporting
Section B - Case 2: TidalWave Energy
TidalWave Energy PLC received a government grant of $3,000,000 on 1 January 20X4 to assist with the construction of the tidal lagoon (total capitalized cost $14,000,000). The plant has an estimated useful life of 20 years and is depreciated straight-line. TidalWave's accounting policy is to treat the grant as deferred income.
What amount of grant income should be recognized in the statement of profit or loss for the year ended 31 December 20X4?
Answer options:
$3,000,000
$150,000
$0
$700,000
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