State the four types of government grants that can be awarded to an entity that are not within the

scope of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance?

IAS 20 (Accounting for Government Grants and Disclosure of Government Assistance) outlines how
to account for government grants and other forms of government assistance. While it covers most
government grants, there are specific types that fall outside its scope. Here are the four types of
government grants that are not within the scope of IAS 20:

Government Assistance Related to Taxable Income: IAS 20 does not address government assistance
provided in the form of benefits used to determine taxable income. These benefits are not
considered government grants under IAS 20.

Government Grants Covered by IAS 41 (Agriculture): Grants related to agricultural activities are
specifically covered by IAS 41 and are not within the scope of IAS 20.

Government participation in the ownership of the entity

The special problems arising in accounting for government grants in financial statements reflecting
the effects of changing prices or in supplementary information of a similar nature.

Does the government assistance to Roberts Property Group qualify as government assistance in
terms IAS 20 Accounting for Government Grants and Disclosure of Government Assistance

Qualifying Characteristics of Government Assistance:

To determine whether government assistance to Roberts Property Group qualifies as government

assistance in terms IAS 20 be considered government assistance under IAS 20, the following
characteristics will be discussed:

Flow from Government Entity: Government assistance must originate from a government entity or a
government-related organization. It can be provided by central, regional, or local authorities, as well
as agencies or bodies established by the government.

In the case of Roberts Property Group, it is the central government of Zimbabwe which introduced a
policy to promote infrastructure development and economic growth

Economic Benefit: Government assistance should result in an economic benefit or advantage for the
recipient entity. This benefit can be in the form of cash, assets, or reductions in liabilities, and it
should enhance the entity's financial position or operating performance.

In the given case, Roberts identified an opportunity to develop a new hotel in Victoria Fall,
Zimbabwe, and take advantage of the introduced government policy and received an economic
benefit of cash from the government representing 40% of the cost
Specific Eligibility Criteria: Government assistance is typically granted based on specific eligibility
criteria established by the government. These criteria may include factors such as the nature of the
recipient's activities, geographic location, industry sector, or compliance with certain conditions or
obligations.

From the scenario given, Roberts met the set eligibility criteria set because tourism related
infrastructure was also included in the policy.

Intention to Provide Assistance: Government assistance must be provided with the intention of
supporting the recipient entity. The assistance should be aimed at achieving economic, social, or
environmental objectives in line with government policies or public interest.

The intention in this case was indeed to support Roberts and this assistance was aimed at achieving
the economic objectives through promoting tourism and it was inline with the government policy

Having analysed all the qualifying factors for government assistance to be considered as such within
the scope of IAS 12, the assistance made to Roberts fulfils all pre-requisites therefore it qualifies as
government assistance in terms of IAS 20 Accounting for Government Grants and Disclosure of
Government Assistance