Earlier i asked about IAS 20, “Government Grants” but i think i was not able to convey my querry properly. Let me ask the same again with an illustration:
Suppose an entity (A) which is owned by Government (B).
Another Government (C) provide a donation in kind (in the shape of assets).
Will this grant be accounted for under IAS-20?, or,
Whether the grant is excluded from the scope of IAS-20 (through exclusion paragraph)?
Please let me guide about treatment of this grant.
Yes a government grant is a government grant whether it is used in country B or country C and granted by the other country. There will be a government decision on granting the grant or a request by the entity Afor granting the grant that will specify the reason for doing so by country B, this should be shortly disclosed in the notes to explain the circumstances and reasoning in granting the grant.
So IAS 20 is fully applicable.