Government Grants
IAS 20 Accounting for Government Grants and Disclosure of Government Assistance provides guidance on recognising, measuring and disclosing government grants and disclosing other forms of government assistance.
The Board’s objectives in this project are to update IAS 20 to improve the information provided to users of financial statements by:
- eliminating inconsistencies with the Framework, in particular the recognition of a deferred credit when the entity has no liability; and
- eliminating options that can reduce the comparability of financial statements and understate the assets controlled by an entity.
Where are we in the project?
The project has been deferred since February 2006. For more details click here for the full project summary. The Board will continue to monitor progress in other related projects to determine the appropriate timing for activating work on the project.
Is this project part of the Memorandum of Understanding?
Yes. This project is part of short-term convergence with the FASB. The MoU sets out a Roadmap of Convergence between IFRSs and US GAAP 2006-2008. Click here for more information on the MoU.
Related projects
There are important interactions between this project and other projects, particularly the Board’s consideration of amendments to IAS 37, revenue recognition, and emission trading schemes.