Discuss CIMA CIMAPRA19-F01-1 Exam Topic 2 Question 1

CIMAPRA19-F01-1 Exam - Topic 2 Question 1 Discussion

Posted by Sharee on May 09, 2022 at 04:06 PM

Which THREE of the following statements about government grants are INCORRECT?

AA grant is recognised as revenue

BGrants must not be deducted from the related expenses in financial statements

CCapital grants relate to cash inflow and outflow

DA compensatory grant should be recognised in statements when it is received, not when the expenses it applies to occurred

EA grant is recognised only when there is reasonable assurance that the entity will comply with any conditions attached to the grant

Suggested Answer: A, B, C

8 comments · newest first

Lili 12 months ago

E makes sense, compliance is key for recognition!

Veda 1 year ago

C is misleading; capital grants aren't just about cash flow.

Ilda 1 year ago

Wait, are we sure about B? Seems off to me.

Rosendo 1 year ago

Totally agree, A is definitely incorrect.

Blossom 1 year ago

Grants are usually recognized as revenue, right?

Olen 1 year ago

Hmm, I'm a bit unsure here. Should we notify the employees first before restricting access? I don't want to overlook any important steps.

Natalie 1 year ago

This question seems straightforward, I think I can handle it.

Willard 1 year ago

I feel like I encountered a similar question before, and we concluded that both can be loaded.

Thread summary

● Consensus

Community pick: Yes strong agreement

Vote breakdown

A 98%

B 90%

C 98%

D 2%

E 3%

Summary updated from 8 comments · last activity 12 months ago

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