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International Accounting Standards (IAS)
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| U.S. GAAP | IFRS, IAS | Accounting Topics |
International Accounting Standard (IAS) 20
Accounting for Government Grants
and Disclosure of Government Assistance
International Financial
Reporting Standards (IFRS) |
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International Accounting
Standards (IAS) |
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U.S. GAAP by Topic |
| International Accounting Standard (IAS) 20 |
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IAS 20
Accounting for Government
Grants and Disclosure of Government Assistance Issued in
April 1983
Reformatted in 1994 Recent amendment:
by IAS 1 revised in September 2007 |
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To
recognise government grants --> reasonable assurance of the following items is required, (1) compliance with the conditions attached (2) receipt of the grants |
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A
forgivable loan --> treated as a government grant --> if the following is reasonably assured (1) the terms for forgiveness of the loan will be met |
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If a
government grant is recognised, --> IAS 37 applies to related contingent liability and contingent asset |
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Government
grants --> not credited to shareholders' interest directly --> capital approach is not used |
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Government
grants --> recognised as income (over the periods) --> as they match with related costs --> income approach is used |
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Government
grants related to income --> presented as a credit --> in the statement of comprehensive income |
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Government
grants related to assets --> two acceptable alternatives (1) report as deferred income --> deferred income is recognised as income (over the life of asset) (2) deduct from the carrying amount of asset --> recognised as income --> through a reduced depreciation charge (over the life of asset) |
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