2012CPA会计英语第五单元(完整版).docVIP

Unit 5 Special Issues Government grants Definition A government grant is defined as assistance, in the form of cash or other assets, given in return for compliance with certain conditions relating to the enterprise’s operations. Accounting treatment An entity should not recognize government grants ( including non-monetary grants at fair value) until it has reasonable assurance that : The entity will comply with any conditions attached to the grant The entity will actually receive the grant IAS 20 requires grants to be recognized under the income approach (收益法), i.e. grants are recognized as income over the relevant periods to match them with related costs which they have been received to compensate. This should be done on a systematic basis of matching. Grants related to assets: Set up the grant as deferred income Example: Europe Limited buys a building for a total cost of $200,000. They receive a European Community grant of $60,000 towards the cost and pay the net of $140,000 by check. The useful economic life of the building is estimated at 50 years. Under the deferred income (递延收益) method: Dr NCA 200,000 Cr Cash 140,000 Cr Deferred Income 60,000 Depreciation （折旧） = 200,000 / 50 = 4,000 pa Amortization of Government grant （政府补助的摊销）= 60,000 / 50 = 1,200 pa Dr Deferred income 1,200 Cr Grant income 1,200 （营业外收入） Grants related to income: 1. If expenditure already incurred: Dr Grant Receivable $x Cr Grant Income $x 2.If expenditure is to be incurred in the future: Dr Grant Receivable $x Cr Deferred Income $x Dr Deferred Income $x Cr Grant Income $x  Borrowing costs Borrowing costs comprise the interest and other costs incurred by an enterprise in borrowing funds： Interest expense calculated using the effective interest rate Finance charges in respect of finance leases Exchange differences 借款费用是企业因借入资金所付出的代价，包括借款利息、折价或者溢