C) The governmental grants will be accounted as revenues, when the receivables are received. Although LAS/IFRS includes in IAS 20
“Accounting for Government Grants and Disclosure of Government Assistance “ special stipulations related to government grants, IASB was forced to create separated stipulations for their accounting due to the fact that agricultural government grants are becoming more and more frequents. Offering unconditional grants is not corrected by any restrictive stipulation; they are conditioned when their offering depends on at least 3 requirements: for example, the government stipulates the land to be exploited for 3 years; if this condition is not fulfilled, the grant must be reimbursed. The unconditional government grants are recognized as revenue only when the grant becomes receivable. The conditional grants, such as those given for ceasing as agricultural activity will be registered as revenues when the conditions corrected with the grants are fulfilled, and chargeable revenue is registered for the grant donor. The IAS 41 refers only to the grants that are given for biological assets evaluated at fair value, minus estimated costs at the sale point. The biological assets grants, as they are registered with historical analyzed costs, are treated according with IAS 20.
RESULTS AND DISCUSSIONS
Situations where the fair value cannot be reliably measured
It is assumed that the fair value cannot be reliably measured for a biological asset. This hypothesis can be ignored only at the initial recognition of a biological asset, for which there are not available prices or values determined on the market and for which the alternative estimations of the fair value are not clearly reliable. In these cases, the biological assets will be evaluated at cost less any cumulated depreciation and any loss from cumulated depreciation. Once the fair value for such a biological asset can be measured reliably, an entity will measure it at the fair less the estimated point –of-sale costs. When as asset meets the classification conditions as detained for sale according to IFRS 5, it is assumed that the fair value can be reliably measured. In all cases, an entity measures the agriculture products at the date of harvest at the fair value less the estimated at point-of sale costs. Reflecting in this way the idea that the agriculture products measured at the date of harvest can be always measured reliably. A government unconditional grant is relation to an measured biological asset at the fair value less the estimated point –of-sale costs will be recognized as income when and only when the government grant becomes debt. When a government grant in relation to a biological asset measures at the fair value less the estimated point-of-sale costs is conditional, including also the case when this government grant is conditional by the non-engagement in the specified agriculture activities, an entity will recognize the grant as income when and only when the imposed conditions for the receiving the grant are fulfilled.