Wiley Interpretation and Application of IFRS Standards

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. Non-Monetary 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. Impairment of Assets and Government Grants
   3. Government Assistance
7. Service Concessions
   1. 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, Accounting for Government Grants and Disclosure of Government Assistance, addresses selected accounting and reporting issues arising in connection with such grants. 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 resources/incentives ...