Reference no: EM132993687

Problem 1: Government assistance to entities with no conditions specifically relating to the operating activities of the entity other than the requirement to operate in certain regions or industry sector is accounted for as?

a) Income on a straight-line basis

b) Government grant

c) Other forms of government assistance

d) A credit directly to equity

Problem 2: Which statement is incorrect regarding recognition of government subsidies related to the coronavirus pandemic?

a) Government grants can be recognized only when it is confirmed that an entity is eligible to receive the subsidy and that any conditions attaching to these subsidies are met.

b) In cases where subsidies are given to entities without any specified conditions, an asset can be recognized at the time when it is reasonably certain that the grants will be received.

c) The receipt of a grant provides conclusive evidence that the conditions attaching to the grant have been, or will be, fulfilled.

d) None of these.