Recognition of Government grants: treat as asset cost reduction or income based on grant nature and related obligations. The standard requires that Government grants be recognised only when there is reasonable assurance of compliance with conditions and receipt, without postponing recognition beyond actual receipt. Grants related to depreciable assets reduce asset cost or written down value; grants tied to non-depreciable assets with obligations are recognised as income over the period matching related costs; compensation for past expenses is recognised when receivable; non-monetary concessional grants are accounted at acquisition cost. Refundable grants first offset deferred credit, with excess charged to profit and loss and asset-related refunds increasing asset cost for prospective depreciation.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Recognition of Government grants: treat as asset cost reduction or income based on grant nature and related obligations.
The standard requires that Government grants be recognised only when there is reasonable assurance of compliance with conditions and receipt, without postponing recognition beyond actual receipt. Grants related to depreciable assets reduce asset cost or written down value; grants tied to non-depreciable assets with obligations are recognised as income over the period matching related costs; compensation for past expenses is recognised when receivable; non-monetary concessional grants are accounted at acquisition cost. Refundable grants first offset deferred credit, with excess charged to profit and loss and asset-related refunds increasing asset cost for prospective depreciation.
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