Page 7 - PowerPoint Presentation
P. 7
GOVERNMENT GRANTS AND GOVERNMENT ASSISTANCE
Overview
• Definition of government grants - are assistance by
government in the form of transfer of resources to
an entity in return for past or future compliance
with certain conditions relating to the activities of
an entity.
• Government grants can be divided into three
categories for accounting purposes, namely:
• asset-based grants,
• income-based grants, and
• grants related to loans.
7
