Which of the Following Is Correct with Respect to the Accounting

question 71

Multiple Choice

Which of the following is correct with respect to the accounting for re-payment of government grants?

• A)Accounted for prospectively under IFRS.
• B)Accounted for retrospectively under ASPE.
• C)Accounted for prospectively under ASPE
• D)Accounted for retrospectively under IFRS.

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Definitions:

Registered Education Savings Plan

A tax-advantaged savings account in Canada designed to help save for a child's post-secondary education.

Compounded Semi-annually

Involves calculating and adding interest to the principal amount of an investment or loan twice per year, leading to compound growth over time.

Semi-annual Withdrawals

Withdrawals made twice a year from an account or investment.

Compounded Annually

The method of calculating interest in which the interest earned each year is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.