If an entity receives fixed assets as grants from an individual or business entity, what is the accounting treatment for this transaction against the backdrop of the grant not being a government grant, which is provided for under International Accounting Standard 20(IAS 20).
Should the value of the fixed assets received be credited to a grants account and the corresponding debit taken to fixed assets, with annual credits being made to the Income statement over the life of the fixed Asset (in otherwords no depreciatio being charged at all!!!!) such that the grant account would have been released in its entirety by the end of the estimated useful life of the Fixed Asset?
Also, what should be the amount that should be recognised as being the value of the asset given as grant- i.e. is it the market value subsisting at the date of the grant or otherwise?
Please provide me with the Reporting framework/standard (UK and/or International) for this type of transaction.
Thanks in anticipation of a swift reply.