Page 9 - PowerPoint Presentation

GOVERNMENT GRANTS AND GOVERNMENT ASSISTANCE

Income-based grants

• All government grants that are not asset-based are

income-based grants.

• The receipt of an income-based grant can be presented

in one of the following two ways:

• The grant is presented as a credit in the statement of profit or
loss and other comprehensive income, either separately or

under a general heading such as "other income", OR

• The grant is deducted from the related expense.

• Should an income based grant relate to more than one

year, the portion of the grant related to the expenses of
future periods will be deferred and recognised in the

same period as the related expenses of the future

periods.

9