My supplier is providing me a fixed asset free of cost. I have a contract with the supplier for 3 years where in he will provide me with 3 Million worth of raw materials and a machine worth 2 million independent of the raw material. I can use that machine for any purpose I want.
I am planning to book that fixed asset as deferred revenue i.e. Fixed asset Dr and Deferred revenue Cr. and recognize revenue in 3 years over the period of contract validity. We follow IFRS. Is this treatment allowable under IFRS? If not what should I do?
CAclubindia
