Facts
Brilliant Inc. received a grant of $60 million to compensate it for costs it incurred in planting trees over a period of five years. Brilliant Inc. will incur such costs in this manner:
|
Year |
Costs |
|
1 |
$ 2 million |
|
2 |
$ 4 million |
|
3 |
$ 6 million |
|
4 |
$ 8 million |
|
5 |
$10 million |
Total costs thus incurred will aggregate to $30 million, whereas the grant received is $60 million.
Required
Based on the provisions of IAS 20, how would Brilliant Inc. treat the “grant” in its books?