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12- Which of the following statements is correct? .

a-IAS PPE forbids the capitalization of any subsequent expenditure on an asset

b-IAS Impairment of assets applies to all assets including inventories and receivables

c-IAS Accounting for government grants and disclosure of government assistance allows grants related to assets to be presented in the statement of financial position as deferred income or as a deduction from the cost of the related assets

d-IFRS Leases always requires a lessee to recognize a right of the use asset in respect of a lease

Accounting IFRS
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Question added by khalde dsoeld , accounting , PwC
Date Posted: 2018/09/23
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Adeel ahmad
by Adeel ahmad , Manager Finance & Taxation , ACM Plasco International (PVT) Ltd, Hattar Industrial Estate, Haripur, Pakistan (Subsidiary of Pakis

C. IAS 20 allows the treatment of GG either by reducing cost of asset or fixed asset at own cost and GG as a deferred income. And deferred income is considered as liability.

Muhammad Kassab CPA CMA CertIFR
by Muhammad Kassab CPA CMA CertIFR , Accounting Manager , Marine Buildings Landmarks

I definitely agree with the answer C. Still answer D is tricky, I believe the right of use is used for operating lease, while in the financing lease the asset is recorded under the leased asset category.

khalde dsoeld
by khalde dsoeld , accounting , PwC

But how about D? I think it is also right

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