MGT223H5 Midterm: Government Assistance - IFRS.pdf
Document Summary
Accounting for government grants and disclosure of government. Government assistance is action by government designed to provide an economic benefit specific to an entity qualifying under certain criteria. Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. Government grants, including non-monetary grants at fair value, should not be recognised until there is reasonable assurance that: the entity will comply with the conditions attaching to them; and, the grants will be received. Note how the grants do not have to be received. Receipt of a grant does not of itself provide evidence that the conditions of the grant have been or will be fulfilled. A forgivable loan from the government is treated like a government grant as long as there is reasonable assurance that the entity will meet the terms for forgiveness of the loan.
