Part 1: Introduction + Executive Summary
Part 2: Introduction to government grants, Government grants – In detail
Part 3: Types of grants, Accounting for government grants
Part 4: Grants under different situations, Non-monetary government grants, Presentation of grants
Part 5: Repayment of government grants, Government assistance, Disclosures
Introduction
International Accounting Standard 20: Accounting for Government Grants and Disclosures of Government Assistance answers the critical questions like how to account for any help or assistance provided by government or similar body to aid entity in its operations.
Executive Summary
IAS 20 states that assistance may be provided in capital or revenue expenditures. Depending on the expenditure to which grant is given the accounting treatment is incorporated in the financial statements. Under both the grants, management has the option to treat grant as a separate item in the financial statement or deduct from the related expenditure that will result in expenditure being reported on net basis.