Global Standards for the world economy

Wednesday 19 December 2018

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IAS 20 Accounting for Government Grants and Disclosure of Government Assistance—Accounting for repayable cash receipts


 Issues Rejected—Agenda Decisions

IAS 20 Accounting for Government Grants and Disclosure of Government Assistance—Accounting for repayable cash receipts

The Interpretations Committee received a request to clarify the accounting for cash received from a government to help the entity finance its research and development project (‘R&D project’). More specifically, the request asked whether the entity must recognise the cash received as a liability (on the basis that it is a forgivable loan as defined in IAS 20 Accounting for Government Grants and Disclosure of Government Assistance) or in profit or loss (on the basis that it is a government grant as defined in IAS 20).

Project stages