During the year ended December 31, 2020, Seahawk Ltd. received a government grant of $120,000 for hiring and training costs for the years ending December 31, 2020, 2021, and 2022. The grant represents 25% of the total estimated costs. During 2020, the company spent $200,000 on training. The company's budgeted hiring and training costs for 2021 are $160,000, and for 2022, $120,000. If total hiring and training costs are not at least $480,000 by the end of 2022, the grant is repayable to the government on a pro-rated basis. Seahawk is subject to IFRS.

Required:

a) Explain how the grant should be dealt with in the financial statements of Seahawk for the year ended December 31, 2020, assuming the company uses the net method for presenting government grants, and prepare any necessary journal entries relating to the grant for 2020.

b) Describe the required note disclosures related to the grant for the year ended December 31, 2020, if any.