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Grants 3 3. A government grants a company a licence to mine uranium in Bobonong. The fair value of the licence is P150 000. The

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Grants 3

3. A government grants a company a licence to mine uranium in Bobonong. The fair value of the licence is P150 000. The company was required to pay a small amount of P3000 for the license. REQUIRED: (a) Show the journal entries assuming (i) The company chooses to measure the licence at its fair value. (ii) The company chooses to measure the licence at its nominal value. (b) How will the transactions appear on the Income statement and Statement of Financial Position

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