Reference no: EM132759295

Problem 1: Under IAS 20/AASB 120, Accounting for Government Grants, it is true that:

Select one:

a. government grants relating to assets are to be credited directly to equity.

b. a government grant relating to an asset may be presented as a reduction in the carrying amount of the asset concerneD.

c. subsidies for agricultural activities are discussed in the appendix to IAS 20/AASB 120.

d. a government grant relating to income must be recognised in full at the time the grant is receiveD.

Problem 2: Which of the following items is not normally a payroll ancillary cost for an employer in Australia?

Select one:

a. Medical and hospital insurance

b. Workers' compensation insurance

c. Annual leave

d. Long-service leave