Government grants must be recognised only with reasonable assurance and allocated to match related costs. Government grants are recognised only when there is reasonable assurance of compliance with conditions and receipt; earned benefits are credited to income on a systematic basis to match related costs. Grants may be treated under a capital approach (credited to capital reserve as promoters' contribution) or an income approach (amortised to profit and loss). Grants related to fixed assets are either deducted from asset carrying amount or treated as deferred income and amortised; non-monetary grants are measured at acquisition cost or nominal value if free. Refundable grants are charged as extraordinary items and offset against deferred credits where applicable.
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.
Government grants must be recognised only with reasonable assurance and allocated to match related costs.
Government grants are recognised only when there is reasonable assurance of compliance with conditions and receipt; earned benefits are credited to income on a systematic basis to match related costs. Grants may be treated under a capital approach (credited to capital reserve as promoters' contribution) or an income approach (amortised to profit and loss). Grants related to fixed assets are either deducted from asset carrying amount or treated as deferred income and amortised; non-monetary grants are measured at acquisition cost or nominal value if free. Refundable grants are charged as extraordinary items and offset against deferred credits where applicable.
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