IAS 20 by KA & MN

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Primary condition of grants related to assets is that an entity qualifying for them should purchase, construct or otherwise acquire long and short term assets.

• True

• False

Receipt of a grant does not of itself provide conclusive evidence that the conditions attaching to the grant have been or will be fulfilled.

• True

• False

When a “government grant” becomes repayable the repayment is to be recorded in the year the grant becomes repayable and prior period adjustments are not made.

• True

• False

In case of repayment of grant related to assets, the cumulative additional depreciation that would have been recognised in profit or loss to date in the absence of the grant shall be recognised immediately in other comprehensive income.

• True

• False

Government assistance may be significant but the disclosure of the assistance is not necessary in the financial statements.

• True

• False

A repayment of a government grant received and recognised during previous reporting period is treated as prior period adjustment.

• True

• False

Government grants include transactions with the government which can be distinguished from the normal trading transactions of the entity.

• True

• False

Under “capital approach” a grant is recognised in profit or loss over one or more periods.

• True

• False