SIC Interpretation 10 Government Assistance—No Specific Relation to Operating Activities (SIC‑10) is set out in paragraph 3. SIC‑10 is accompanied by a Basis for Conclusions. The scope and authority of Interpretations are set out in the Preface to IFRS Accounting Standards.
FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION
| |
1 | In some countries government assistance to entities may be aimed at encouragement or long‑term support of business activities either in certain regions or industry sectors. Conditions to receive such assistance may not be specifically related to the operating activities of the entity. Examples of such assistance are transfers of resources by governments to entities which:
|
2 | The issue is whether such government assistance is a ‘government grant’ within the scope of IAS 20 [Refer:IAS 20 paragraphs 1 and 2] and, therefore, should be accounted for in accordance with this Standard. |
3 | Government assistance to entities meets the definition of government grants in IAS 20, even if there are no conditions specifically relating to the operating activities of the entity other than the requirement to operate in certain regions or industry sectors. Such grants shall therefore not be credited directly to shareholders’ interests. |
January 1998
This Interpretation becomes effective on 1 August 1998. Changes in accounting policies shall be accounted for in accordance with IAS 8.