International GAAP 2021

Chapter 24Government grants

• 1 INTRODUCTION
  • 1.1 Overview of IAS 20
  • 1.2 Terms used in this chapter
• 2 SCOPE OF IAS 20
  • 2.1 Government assistance
  • 2.2 Government grants
    • 2.2.1 Definitions
    • 2.2.2 Grants with no specific relation to operating activities (SIC‑10)
  • 2.3 Scope exclusions
    • 2.3.1 General considerations
    • 2.3.2 Investment tax credits
• 3 RECOGNITION AND MEASUREMENT
  • 3.1 General requirements of IAS 20
  • 3.2 Non-monetary grants
  • 3.3 Forgivable loans
  • 3.4 Loans at lower than market rates of interest
  • 3.5 Government guarantees
  • 3.6 Recognition in the income statement
    • 3.6.1 Achieving the most appropriate matching
    • 3.6.2 Loans at lower than market rates of interest
    • 3.6.3 The period to be benefited by the grant
    • 3.6.4 Separating grants into elements
  • 3.7 Repayment of government grants
  • 3.8 Government assistance
  • 3.9 Impairment testing of assets that qualified for government grants
• 4 PRESENTATION OF GRANTS
  • 4.1 Presentation of grants related to assets in the statement of financial position
  • 4.2 Presentation of grants related to income in the statement of profit or loss
  • 4.3 Statement of cash flows
• 5 GOVERNMENT GRANTS RELATED TO BIOLOGICAL ASSETS IN THE SCOPE OF IAS 41
• 6 Disclosures

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: Below-market interest rate loan from ...