Relevant conditions in IAS23 para 17 are fulfilled by the date when.docx

relevant conditions in IAS23 para 17 are fulfilled by the date when
expenditures on the project start to be incurred.
5. The Palila Company purchased a varnishing machine for PHP150,000 on 1 January
20X7.
The company received a government grant of PHP13,500 in respect of this asset. Company
policy was to depreciate the asset over 4 years on a straight-line basis and to treat the grant as
deferred income. Under IAS20 Government grants and government assistance, what should be
the carrying amounts of the machine and the deferred income ("DI") balance at 31 December
20X8?