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Sherry Tsang has just started up a small corporation that produces clothing. She has applied for and received a government grant. The grant will automatically
Sherry Tsang has just started up a small corporation that produces clothing. She has applied for and received a government grant. The grant will automatically be renewed as long as the business shows a profit at year end. Sherry will prepare the financial statements on her own because she is trying to control costs. The bank has lent Sherry money and is waiting for the year-end statements to determine whether it will renew the loan.
Which GAAP should she follow? Explain.
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