During the year ended December 31, Year 1, Seahawk Ltd. received a one-time
government grant of $120,000 to be used for hiring and training costs for the years
ending December 31, Year 1, Year 2, and Year 3. The grant represents 25% of the total
estimated costs.
During Year 1, the company spent $200,000 on training. The company's budgeted
hiring and training costs for Year 2 are $160,000, and for Year 3, $120,000. If total
hiring and training costs are not at least $480,000 by the end of Year 3, the grant is
repayable to the government on a pro-rated basis. Seahawk is subject to IFRS.