Treatment of grant received towards cost of asset

If a company receives a grant towards the cost of a new machine then do you just credit this to the cost and then depreciate the lower figure, or do you show as deferred income and apportion over length of useful life of the machine?

 

thank you for any help

Comments
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Deduct from purchase cost

Phil Rees |
Phil Rees's picture

It's rare I disagree with Phil

neileg |

Perhaps You're Both Right

thomas34 |

Capital allowances

LisaDeering |