Knowledge Check $01$

Which of the following statements about donated assets are true?

Note: Select all that apply.

Check All That Apply

IFRS requires that companies value donated assets at their fair values.

IFRS requires that companies value donated assets at their fair values.

U$.$S$.$ GAAP requires that companies value donated assets at their fair values.

U$.$S$.$ GAAP requires that companies value donated assets at their fair values.

U$.$S$.$ GAAP requires that the amount of grant be deducted in determining the initial cost of an asset donated to the company by a governmental entity.

U$.$S$.$ GAAP requires that the amount of grant be deducted in determining the initial cost of an asset donated to the company by a governmental entity.

Under IFRS, donated assets received through government grants are recorded as revenue.