International GAAP 2020

Chapter 24Government grants

1. 1 INTRODUCTION
   1. 1.1 Overview of IAS 20
   2. 1.2 Terms used in this chapter
2. 2 SCOPE OF IAS 20
   1. 2.1 Government assistance
   2. 2.2 Government grants
      1. 2.2.1 Grants with no specific relation to operating activities (SIC‑10)
   3. 2.3 Scope exclusions
      1. 2.3.1 Investment tax credits
3. 3 RECOGNITION AND MEASUREMENT
   1. 3.1 General requirements of IAS 20
   2. 3.2 Non-monetary grants
   3. 3.3 Forgivable loans
   4. 3.4 Loans at lower than market rates of interest
   5. 3.5 Recognition in the income statement
      1. 3.5.1 Achieving the most appropriate matching
      2. 3.5.2 The period to be benefited by the grant
      3. 3.5.3 Separating grants into elements
   6. 3.6 Repayment of government grants
   7. 3.7 Government assistance
4. 4 PRESENTATION OF GRANTS
   1. 4.1 Presentation of grants related to assets
      1. 4.1.1 Cash flows
      2. 4.1.2 Impairment testing of assets that qualified for government grants
   2. 4.2 Presentation of grants related to income
5. 5 GOVERNMENT GRANTS RELATED TO BIOLOGICAL ASSETS IN THE SCOPE OF IAS 41
6. 6 DISCLOSURES
   1. 6.1 Government grants
   2. 6.2 Government assistance

List of examples

• Example 24.1: Government grant by way of forgivable loan
• Example 24.2: Interest-free loan from a government agency
• Example 24.3: Entity allowed to retain amounts owed to government
• Example 24.4: Grant associated with investment property
• Example 24.5: Government assistance
• Example 24.6: Grant relating to biological assets carried at fair value

Chapter 24Government grants

1 INTRODUCTION

IAS 20 – Accounting for Government Grants and Disclosure ...