Wiley IFRS 2014: Interpretation and Application of International Financial Reporting Standards

Chapter 21GOVERNMENT GRANTS

1. INTRODUCTION
2. SCOPE
   1. Government Grants
3. DEFINITIONS OF TERMS
4. RECOGNITION OF GOVERNMENT GRANTS
   1. 1. Criteria for recognition
      2. Recognition period
   2. Nonmonetary Grants
5. PRESENTATION AND DISCLOSURE
   1. Presentation of Grants Related to Assets
      1. Presentation on the statement of financial position
      2. Presentation in the statement of cash flows
   2. Presentation of Grants Related to Comprehensive Income
   3. Disclosures
6. OTHER ISSUES
   1. Repayment of Government Grants
   2. Government Assistance
7. SERVICE CONCESSIONS
   1. Service concession arrangements
   2. Accounting under the financial asset model
   3. Accounting under the intangible asset model
   4. Operating revenue
   5. Accounting by the government (grantor)
8. US GAAP COMPARISON

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 addresses selected accounting and reporting issues arising in connection with such grants. Government assistance, according to this standard, is action by the government aimed at providing economic benefits to some constituency by subsidizing entities that will provide them with jobs, services, or goods that might not otherwise be available, either at all or at the desired cost. A government grant, on the other hand, is government assistance that entails the transfer of resources in return for compliance, either past or future, with certain conditions relating to the enterprise's operating ...