IAS 20 Government Grants (‘IAS 20’) and SSAP 4 Accounting for Government Grants (‘SSAP 4’) provide guidance in respect of government grants and other forms of government assistance. Both standards restrict the recognition of grant income in profit or loss until there’s reasonable assurance of receipt of the grant and the entity’s fulfilment of associated conditions. If the grant
Significant differences
relates to immediate support or compensation for past expenses, it is recognised immediately. Grants are recognised in profit
or loss on a systematic basis in the periods in which an entity recognises, as expenses, the related costs for which the grants are intended to compensate.