Basem WLL successfully received a government grant of BD1,500,000 on 1 January 2020 allowing it...
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Accounting
Basem WLL successfully received a government grant of BD1,500,000 on 1 January 2020 allowing it to purchase an asset which cost BD1,500,000 on the same date. The asset has a ten-year useful life and is depreciated on a 20% reducing balance basis. Basem WLL policy is to account for a grant received as deferred income.
Which will be recognised as the amount of income in respect of the grant in the year to 31 December 2020?
BD300,000
BD150,000
BD1,500,000
BD500,000
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