Page 217 - F1 Integrated Workbook STUDENT 2018

IAS 20 Government Grants and IAS 40 Investment Properties

1.4 Presentation of revenue grants

IAS 20 Government Grants allows such grants to either:

 be presented as a credit in the statement of profit or loss, or

 be deducted from the related expense.

The grant should only be recognised in the statement of profit or loss as the
conditions of the grant are being complied with. For example, if the grant has been
received for wages to keep people employed for the next two years, the grant should
be recognised in the statement of profit or loss over the two year period. The
remainder of the grant will be held as deferred income until it is recognised in the
statement of profit or loss.

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