GOVERNMENT GRANTS

PAS 20

Government grants - assistance received from the government in the form of transfers of
resources in exchange for compliance with certain conditions
- Only government assistance that meet the asset recognition are recognized as
government grants

RECOGNITION:
Govt. grants are recognized if there is reasonable assurance that: (1) the attached conditions
will be complied with; and (2) the grants will be received.
- Note: The mere receipt of a grant is not conclusive evidence that the attached
condition has been or will be satisfied.

MEASUREMENT:
ACCOUNTING FOR GOVERNMENT GRANTS
- Mayroong capital approach kung saan the grant is recognized outside profit or loss or
in equity
- Mayroon namang income approach na kung saan the grant is recognized in profit or
loss over one or more periods (depending on the expenses being recognized that match
the income from the grant)

PRESENTATION:

Gross Presentation Net Presentation

Grants related to assets SFP - the grant is presented
as a deferred income (liability
account)
SCI - the income from the
grant is reported separately
or included in ‘other income’
SFP - the grant is deducted
from the carrying amount of
the related asset
SCI - the income from the
grant is deducted from the
depreciation charge

Grants related to income SCI - the income from the SCI - the income from the
grant is reported separately grant is deducted from the
or included in ‘other income’ related expense