Page 216 - F1 Integrated Workbook STUDENT 2018

Chapter 13

1.3 Revenue Grants

The recognition of the grant will depend upon the circumstances

 If the grant has been paid when evidence is produced that certain
expenditure has been incurred, the grant should be matched to
that expenditure.

 If the grant is paid on a different basis, e.g. achievement of a non-
financial objective, such as the creation of a specified number of
new jobs, the grant should be matched with the identifiable costs
of achieving that objective.

In accordance with IAS 20 Government Grants, a grant should only be recognised
when there is reasonable assurance that:

 the entity will comply with conditions of the grant and

 the entity will receive the grant.

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