Identify any differences between U.S. GAAP and International Financial Reporting Standards in accounting for government grants received.

Expert Solution

Accounting for Government Grants Received

The government grants received is a donated assets. As per U.S.GAAP, these assets are recorded as revenue. As per IAS No.20, the government grants are recorded as income.

The following are the accounting procedure followed:

1.

The grant amount can be deducted that determines the initial cost of the asset.

2.

The grant amount is reported as liability and recognized in the income statement over the life of asset.

Accounting for Government Grants Received

The government grants received is a donated assets. As per U.S.GAAP, these assets are recorded as revenue. As per IAS No.20, the government grants are recorded as income.

Junaid answered 2 years ago

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