IAS 20 – Government Grants – Theory – 3

How shall government grants related to assets, including non-monetary grants at fair value be presented in the statement of financial position?

Which of the following is an acceptable method of presentation in financial statements of grants related to assets?

Which of the following statements agree with IAS 20 regarding the presentation of the purchase of assets and the receipt of related grants in the statement of cash flow?

How shall a government grant that becomes repayable be accounted for?

Repayment of a grant related to an asset shall be applied first against any unamortised deferred credit recognised in respect of the grant.

Circumstances giving rise to repayment of a grant related to an asset may require consideration to be given to the possible impairment of the new carrying amount of the asset.

Which of the following is an example of government assistance that, according to IAS 20, cannot reasonably have a value placed upon them?

In IAS 20, government assistance does not include the provision of infrastructure by improvement to the general transport and communication network and the supply of improved facilities such as irrigation or water reticulation which is available on an ongoing indeterminate basis for the benefit of an entire local community.

Which of the following shall be disclosed with regards to government grants?