Which is an inappropriate application of the principle

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Problem 1: Government grants shall be recognized in profit or loss on a systematic basis over the periods in which the entity recognizes as expenses the related cost for which the grants are intended to compensate. Which of the following is an inappropriate application of this principle?

a) Grants in recognition of specific expenses are recognized in profit or loss in the same period as the relevant expenses.

b) Grants related to depreciable assets are usually recognized in profit or loss over the periods and in the proportions in which depreciation expense on those assets is recognized..

c) Grants related to non-depreciable assets may also require the fulfillment of certain obligations and would then be recognized in profit or loss over the periods that bear the cost of meeting the obligations.

d) Grants received as part of a package of financial or fiscal aids to which a number of conditions are attached are not recognized.

Reference no: EM132766710

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