Government

Grant
Government
Grant

PAS 20, Government grants or also called subsidies, subventions,

or premiums are assistance received from the government in the
form of transfer of resources in exchange for compliance with
certain conditions.

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Comparison of
FULL PFRS, PFRS for SMEs and PFRS of SE
1 Recognition and
Measurement
 Monetary
Grant
Full PFRS PFRS for SMEs PFRS for SE

• Amount of cash received • Recognized as income • Same as PFRS

• Fair value of amount when grant proceeds are for SMEs
receivable receivable.

Revenue is not recognized until • Recognized as income

there is a reasonable assurance when performance are met.
that.
• Recognized as liability.
• The entity complies with the
conditions attached to the
grants and

• The grants are receivable.

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 Non-monetary
Grant
Full PFRS
Measured at the
• fair value of non-monetary
asset received; or
• alternatively, at nominal
amount or zero, plus direct
costs incurred in preparing
the asset for its intended
use.
PFRS for SMEs PFRS for SE
Grant shall be measured at the Measured to either:
fair value of the asset received
• not recognize the
or receivable
non-monetary grant;
or
• recognize the non-
monetary grant at
fair value.
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2 Disclosure
 Disclosure

PFRS for SMEs

Full PFRS PFRS for SMEs
a. Accounting policy and
method of presentation
b. Nature of amounts of
government grants recognized
in financial statements.
c. Unfulfilled conditions and
other contingencies.
a. Indication of other
forms of assistance
from which the entities
directly benefited.
b. Same as FULL
PFRS b. Same as PFRS for
SMEs
c. Same as FULL c. Same as PFRS for
PFRS SMEs

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 Significance and Differences

Recognized when When conditions are Same as PFRS for

compliance with specified actually satisfied SMEs
conditions is reasonably
assured
Does not allow
Matching of grant income matching of grant
with related cost with related expense

Grant related to asset may Grant as deferred

be treated as either income until
deferred income or a conditions are
reduction to carrying actually satisfied.
amount of the asset.

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Team Presentation

JONNA MAE CRYSTAL JENN

BACLAYO BALABA

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Thanks!

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