sumpletion. The land was alreasly onenod ly Niuda

On I March $2021,$ the goventnsent agency offered to grant a sum amounting to $245$ of the fickory's construction cust fo a masimum of F $13$ million. The grant aid was bo be payable on completion, and would he repryable un demand if total employment at the lactury fell below $300$ peaple within $5$ years of cempletion.

At the financial year end, $31$ March $2021,$ Noxhy had wexpted the offer of grant aid, and had signed eontracts for the cunstruction of the factocy at a tocal coot ot $+52$ million. Corstruction avark was due to coemmence on $1$ April $2021.$

Hy $31$ Mareh $2022.$ the lactory had been completed on budget, $400$ people were employed resty to commonee manufacturing activities, and the government agency agreed that the cunditious nocistary for the drawdown of the grant had been met

On $1$ Apni $2022,$ the foctory was brought into use. It was estimated lhat it woald have a tonycar usefu! economic life. On $2$ June $2022,$ the govermment agency paid over the agreed $+13$ million. In adidicion, the compuny sough and was paid an employment grant of $E1\mathrm{.}2$ miliou as cmployment exceeded original projections. This is expected to be payable annoally for $5$ years in total, at a rate of $612,000$ per additional person employed over $300$ in each year. There are no tepayment provisions attached to the employment grant. The diroctors of Ntudu expect employment levels to exceed $350$ peaple for at least $4$ further years from $31$ March $2023.$

Required:

$($a$)$ Detail the requirements of IAS $20$ Accounting for Government Grants and Disclosure of Government Assistance with respect to govermment grants to aid capital expenditure. Your answer should cover the initial recognition and subsequent treatment of these grants. $(10)$ marks$)$

$($b$)$ Discuss, showing calculations and journal cntries where relevant, how Ntudu Ple should record the above transactions and events in its financial statements for years ended $31$ March $2021,2022$ and $2023.(10$ marks$)|$Total: $20$ MARKS$|$