Problem 24-5 (IFRS)

Required:
Deferred Income

Jan. 1 5,400,000
5,400,000

400,000
400,000
Deferred Income

1,080,000
1,080,000

(5,400,00 x 20% = 1,080,000)

40,000
40,000
(400,000 / 10 years = 40,000)
Deferred Income

Jan. 1 5,400,000
5,400,000

400,000
400,000

1,080,000
1,080,000

40,000
40,000
Deduction from asset
Government Grant

Jan. 1 5,400,000
5,400,000

400,000
400,000
Deduction from asset
Government Grant

480,000
480,000

5,400,000
(400,000)
5,000,000
(200,000)
4,800,000

Annual Depreciation (4,800,000 / 10 years = 480,000)

Deduction from asset

Jan. 1 5,400,000
Government Grant

5,400,000
400,000
400,000
480,000
480,000