Venture Limited received a government grant of $1,200,000 towards the purchase of a machine that cost $3,000,000. The asset is to be depreciated over 4 years and has no residual value. The management of Protract is aware of the deduction from asset and the deferred income methods of accounting, for government grant under IAS 20. They, however, need to understand the impact of the two (2) methods on the financial statement to decide which method to use.

REQUIRED: 

Prepare the extracts from the Statement of Comprehensive Income and the Statement of Financial Position for the first three (3) years to record the grant under both methods.