Two Types of Government Grant for under IAS 20

As you may know, there are two types of grants; revenue based grants (Grants relating to income) and capital grants (Grants related to assets).

In your career, you’ll need to be able to apply the provisions of relevant accounting standards in relation to accounting for government grants. IAS 20 Accounting for Government Grants and Disclosure of Government Assistance is the IFRS applicable to government grants.

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Update: IAS 20 Government Grants quiz

If you’re studying IAS 20 Government Grants, why not test your knowledge with our multiple choice quiz? Click here to try the quiz. By practicing questions you’ll improve your study and recall, ideal for people who learn best by ‘doing’ rather than just reading.

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Government Grants under IAS 20


Government grants are assistance in the form of a transfer of resources (e.g. cash, assets, or assistance) in return for past or future compliance with conditions relating to an enterprise’s operating activities.

Government refers to government, government agencies and similar bodies whether local, national or international.

The standard does not deal with:

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