IAS 20 treatment

All topics related to IFRS Standards.
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imrantaj
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Joined: 17 Oct 2021, 06:42

IAS 20 treatment

Post by imrantaj »

I have a question relevant to government grants and preparation of income and expenditure statement.
Last year government announced that 300 million will be given to entity whereas at the end of the day entity receives only 90 million. The expenses for the year are 100 million.
now can we recognize 300 as an income but received only 90 million in this FY.

Income generated 5 million
grant receievd 90 million


Expenditure 100 Million
Previous grant used (5 million)

Income / Expense NIL

is this treatment correct as ias 20 narrates that grant can be used on s systematic basis againt the expenses incurred.
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Marek Muc
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Joined: 15 Oct 2018, 17:21
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Re: IAS 20 treatment

Post by Marek Muc »

can you show your debits and credits relevant to the whole arrangement (incurred expenses and received/recognised grant) more clearly please?
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