Dear all,
 
I have a querry in IAS 20- Government Grants:
 
  • In the scope paragraph of the standard, those entities are excluded from the applicability of this standard which are owned by “Government”.
Q) My querry is that which government is refered in this paragraph?
        a) That Government which has provided grant to the reporting entity?
        b) Any government?
 
The confusion arises as in case the grant is given by the same government which also owns that entity, this standard do not apply to that standard altogether. As the owners contribution, in any form it might be, shall be credited to the equity. It cannot in any way be credited to income. I think that is the reason the scope paragraph has excluded it from the applicability of this standard, because the standard requires government grants to be recognized in income rather than in equity. In my own opinion that paragraph do not refers to “any government”. Please guide my in this regard.
 
Thanks,
 
SAMI


Sami,

art 2 (c) exclude ‘government participation in the ownership
participation’.

So if a government own an entity and give a grant, the grant has to be
occounted under ias20.

Bernard