Accounting for Government Grants and Disclosure of Government Assistance (IAS 20) specifies the requirements for recognizing as income any grants received from government agencies, as well as any repayments of such grants. Jaleel plc (Jaleel) applied to a government agency on January 1, 2020, for a grant to help with the construction of a factory in the West Bank area of al-Aghwar. The factory's projected construction cost was $26 million, and the firm estimated that it would employ 250 employees upon completion. Jaleel already owned the land. On March 1, 2020, the government agency proposed a grant of up to $6.5 million, or 25% of the factory's construction costs. The grant funding was to be paid upon completion and repaid on demand if total employment at the factory fell below 225 employees within five years of completion. At the end of the fiscal year, 31 March 2020, Jaleel had accepted the offer of grant and had signed contracts for the $26 million factory's construction. Construction work was scheduled to begin on April 1, 2020. By March 31, 2021, the factory had been finished on time, 275 people had been hired and were ready to begin manufacturing activities, and the government agency had agreed that the conditions for drawing down the grant had been met. The factory officially opened on April 1, 2021. It was estimated that it would have a useful economic life of ten years. The government agency paid more than the agreed-upon $6.5 million on June 1, 2021. Furthermore, the company requested and received a $0.5 million employment incentive because employment exceeded initial forecasts. This is planned to be paid annually for a total of five years, at a cost of $10,000 for each additional person employed over 225 in each year. The employment grant contains no repayment provisions. Jaleel's directors anticipate that employment will reach 350 workers for at least four years beginning March 31, 2022. Required: (a) Discuss how Jaleel ple should record the above transactions and events in its financial statements for the fiscal years ended 31 March 2020, 2021, and 2022, including computations and journal entries where appropriate. (b) Specify what accounting adjustments would be required if it became clear on March 31, 2023, that employment at the factory will drop below 225 persons. Accounting for Government Grants and Disclosure of Government Assistance (IAS 20) specifies the requirements for recognizing as income any grants received from government agencies, as well as any repayments of such grants. Jaleel plc (Jaleel) applied to a government agency on January 1, 2020, for a grant to help with the construction of a factory in the West Bank area of al-Aghwar. The factory's projected construction cost was $26 million, and the firm estimated that it would employ 250 employees upon completion. Jaleel already owned the land. On March 1, 2020, the government agency proposed a grant of up to $6.5 million, or 25% of the factory's construction costs. The grant funding was to be paid upon completion and repaid on demand if total employment at the factory fell below 225 employees within five years of completion. At the end of the fiscal year, 31 March 2020, Jaleel had accepted the offer of grant and had signed contracts for the $26 million factory's construction. Construction work was scheduled to begin on April 1, 2020. By March 31, 2021, the factory had been finished on time, 275 people had been hired and were ready to begin manufacturing activities, and the government agency had agreed that the conditions for drawing down the grant had been met. The factory officially opened on April 1, 2021. It was estimated that it would have a useful economic life of ten years. The government agency paid more than the agreed-upon $6.5 million on June 1, 2021. Furthermore, the company requested and received a $0.5 million employment incentive because employment exceeded initial forecasts. This is planned to be paid annually for a total of five years, at a cost of $10,000 for each additional person employed over 225 in each year. The employment grant contains no repayment provisions. Jaleel's directors anticipate that employment will reach 350 workers for at least four years beginning March 31, 2022. Required: (a) Discuss how Jaleel ple should record the above transactions and events in its financial statements for the fiscal years ended 31 March 2020, 2021, and 2022, including computations and journal entries where appropriate. (b) Specify what accounting adjustments would be required if it became clear on March 31, 2023, that employment at the factory will drop below 225 persons