IAS 20 - Government Grants
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 20 provides rules on accounting for government grants and the disclosure of government assistance. Grants are recognized when there is reasonable assurance that the entity will comply with conditions and receive the grant.
Use cases, Example & Why it matters
Use cases
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Example
- Example: When preparing year-end reporting, management applies **IAS 20 - Government Grants** to determine the correct IFRS treatment and disclosures.
Why it matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.
Related terms
- IAS 1 - Presentation of Financial Statements
- IAS 10 - Events After the Reporting Period
- IAS 11 - Construction Contracts
- IAS 12 - Income Taxes
- IAS 16 - Property, Plant and Equipment
- IAS 17 - Leases
- IAS 18 - Revenue
- IAS 19 - Employee Benefits
- IAS 2 - Inventories
- IAS 21 - Effects of Changes in Foreign Exchange Rates