Download Quick Reference on Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance
The objective of this Standard is to provide for accounting of, and the disclosures of, government grants and also the disclosure of other forms of government assistance.
Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity.
They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity.
Government grants, including non-monetary grants at fair value, shall not be recognised until there is reasonable assurance that:
a) the entity will comply with the conditions attaching to them; and
b) the grants will be received.
Government grants shall be recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grants are intended to compensate.