The Board reviewed the status of its project to amend IAS 20 Accounting for Government Grants and Disclosure of Government Assistance.
The Board last discussed the project in July 2004, when it decided to replace the recognition requirements of IAS 20 with the recognition requirements for government grants related to assets measured at fair value included in IAS 41 Agriculture.
The Board acknowledged that IAS 20 is inconsistent with the Framework and that there is a need to update the Standard. However, the Board also noted some concerns about the conceptual basis of the government grant model in IAS 41, particularly in its treatment of conditional grants.
The Board noted that its work in other projects, in particular its project to amend IAS 37 Provisions, Contingent Liabilities and Contingent Assets, might yield insights into the appropriate treatment of obligations arising in conditional grants. Therefore, the Board decided to defer work on the IAS 20 project until further work on those projects is completed.
The Board noted that it had previously concluded that its IAS 20 project is precedential to its Emissions Trading project. Accordingly, the decision to defer the IAS 20 project ment that work on the Emissions Trading project was also deferred.