In April 2001 the International Accounting Standards Board adopted IAS 20 Accounting for Government Grants and Disclosure of Government Assistance, which had originally been issued by the International Accounting Standards Committee in April 1983.

In April 2001 the International Accounting Standards Board adopted IAS 20 Accounting for Government Grants and Disclosure of Government Assistance , which had originally been issued by the International Accounting Standards Committee in April 1983.

IAS 20 provides guidance on accounting for government grants and the necessary disclosures.

Government grants covered by IAS 41 Agriculture. For immediate financial support, with no future related costs. Recognise as income in the period in which it is receivable. Deducted from the related expense.

May 17, 2024 · IAS 20 provides guidance on how entities should account for benefits received from government grants. Government grants, also referred to as subsidies or subventions, are transfers of resources provided by the government to the reporting entity.

Under IAS 20, grants related to assets are government grants whose primary condition is that an entity qualifying for them should purchase, construct, or otherwise acquire long-term assets.

International Accounting Standard 20 Accounting for Government Grants and Disclosure of Government Assistance (IAS 20) is set out in paragraphs 1⁠–⁠48. All the paragraphs have equal authority but retain the IASC format of the Standard when it was adopted by the IASB.

Government grants per paragraph 3 of IAS 20 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.

IAS 20 Accounting for Government Grants and Disclosure of Government Assistance sets out the accounting for, and the disclosure of, government grants and the disclosure of other forms of government assistance. This page provides information on the standard, alongside ICAEW factsheets and guides.

IAS 20 classified government grants into two main types as follow: Government Grant Related Assets. Grant related to Assets are grants that the government provided to any qualified entity primarily to purchase, construct or to acquire any long term assets.