10. If a university receives a grant to test a product under a federal contract, but the government retains the patent to the product, the grant should be classified as a(n): a. nonexchange transaction. b. exchange transaction. c. contributed service. d. loan activity.
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- 4. SMEs account for government grants as follows (choose the incorrect statement): a. A grant that does not impose specified future performance conditions on the recipient is recognized in income when the grant proceeds are receivable. b. A grant that imposes specified future performance conditions on the recipient is recognized in income only when the performance conditions are met. c. Grants received before the revenue recognition criteria are satisfied are recognized as a liability. d. Government grants are measured at the fair value of the asset received or receivable or at nominal cost. 5. Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are accounted for by an SME as a. Outright expenses b. Capitalizable costs c. a or b d. a component of other comprehensive incomeIn the case of a nonmonetary grant, which of the following accounting treatments is prescribed by IAS20? (a) Record the asset at replacement cost and the grant at a nominal value. (b) Record the grant at a value estimated by management. (c) Record both the grant and the asset at fair value of the nonmonetary asset. (d) Record only the asset at fair value; do not recognize the fair value of the grant.What are unrestricted funds? Does grant funding typically consist of restricted or unrestricted funds? What is the difference between a grant and a contract?
- Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? A When the consignor receives cash remittance from the consignee. B When it is probable that future economic benefits will flow to the consignor and the fair value of the revenue can be measured reliably. C When the consignor enters into a consignment contract with a consignee. D When the consignor satisfies its performance obligation under consignment contract.Which of the following is true regarding government grant related to asset? *a. Depreciation is higher and net income lower if the grant is recorded as deferred revenueb. Depreciation is higher and net income lower if the grant is an adjustment to the assetc. Depreciation is higher if the grant is a deferred revenue and net income is not affectedd. Depreciation is higher if the grant is adjustment of the assetWhich of the following statements is correct? Multiple Choice A contribution receivable should be recognized as an asset when the amount can be reasonably estimated AND the ultimate collection is reasonably assured. A contribution receivable should be recognized as an asset when the amount can be reasonably estimated OR the ultimate collection is reasonably assured. Bequests are accrued at the time the donor advises the NFPO of the gift. Government funding is recognized as contribution revenue as long as the government is the direct recipient of the good or service. Group Ends
- Under PFRS 15, when shall a consignor recognize revenue from its consignment sales? When it is probable that future economic benefits will flow to the consignor and the fair value of the revenue can be measured reliably. When the consignor receives cash remittance from the consignee. When the consignor satisfies its performance obligation under consignment contract. When the consignor enters into a consignment contract with a consignee.Which of the following statements relating to the accounting for research and development expenditure under IAS 38 is CORRECT? (i) All expenditure on research should be written off in the year incurred.(ii) All expenditure on development should be written off in the year incurred.(iii) Expenditure on research which satisfies all stipulated conditions can be capitalised.(iv) Expenditure on development which satisfies all stipulated conditions can be capitalised. Question 8 options: 1) Statements (i) & (ii) only. 2) Statements (iii) & (iv) only. 3) Statements (i) & (iv) only. 4) Statements (ii) & (iii) only.What do indirect costs cover and how are they typically calculated? What are unrestricted funds? Does grant funding typically consist of restricted or unrestricted funds? What is the difference between a grant and a contract?
- Government grants are recognized only when there is reasonable assurance that the entity will comply with the conditions attaching to them the grants are received the grants will be received a and b a and cGrant money received from another level of government represents which of the following classes of non-exchange transactions for governmental funds? O A) Government-mandated non-exchange transactions. B) Derived tax revenues. Imposed non-exchange revenues. D) Voluntary non-exchange transactions.Which of the following is not a criterion that must be met under FASB ASC 958-605-25-16 for contributed services? a. They are provided by persons possessing required skills. b. They are provided by licensed professionals. c. They create or enhance nonfinancial assets. d. They would typically have to be purchased if not provided by the donors/volunteers.