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【单选题】
On 1 January 20X1, Sly received $2m from the local government on the condition that they employ at least 100 staff each year for the next 4 years. On this date, it was virtually certain that Sly would meet these requirements. However, due to an economic downturn and reduced consumer demand, after one year, Sly no longer needed to employ anymore staff. The conditions of the grant required full repayment. What should be recorded in the financial statements?A.
Reduce deferred income balance by $1, 500, 000
B.
Reduce deferred income by $1,500,000 and recognise a loss in the financial statements of $500, 000
C.
C Reduce deferred income by $2,000,000
D.
D Reduce deferred income by $2,000,000 and a gain in the financial statements of $500,000
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