Grant related to income
On Jan 01, 01, entity E receives a government grant of CU 4 for its research activities that will be performed in 01 and 02. Starting on this date, there is reasonable assurance that E will comply with the conditions attaching to the grant. In both 01 and 02 research costs of CU 10 are incurred.
Required
Prepare any necessary entries in E”s financial statements as at Dec 31 for the years 01 and 02. The grant is presented in E”s statement of comprehensive income according to the:
(a) gross method,
(b) net method.