21GOVERNMENT GRANTS
INTRODUCTION
Government grants or other types of assistance, where provided, are usually intended to encourage entities to embark on activities that they would not have otherwise undertaken. IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, addresses selected accounting and reporting issues arising in connection with such grants and assistance.
Government assistance, according to this standard, is action undertaken by a government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. Examples of such government assistance could include the provision of guarantee facilities to encourage foreign trade or the provision of free training, advice or other ...
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