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:
(a) eliminating inconsistencies with the Framework, in particular the recognition of a deferred credit when the entity has no liability; and
(b) eliminating options that can reduce the comparability of financial statements and understate the assets controlled by an entity.
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.
Next due process step
Work on the project is deferred until further progress is made on other projects (see below).
Due process steps completed
Stage 1: Setting the agenda
Work on the initial project commenced in November 2002. At that time the Board reviewed the differences between IAS 20 and US GAAP and decided to undertake the project as part of its short-term convergence project with the FASB.
Stage 2: Project planning/status
The project does not have a working group due to its limited scope. Further, although this is a short term convergence project, it is being conducted by the IASB only.
The project has been deferred since February 2006 (click here for the full project summary for more details). The Board will continue to monitor progress in other related projects to determine the appropriate timing for activating work on the project.
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.
Further information:
.
Project contacts: