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SIC-10 Government Assistance—No Specific Relation to Operating Activities

Standard 2024 Issued
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SIC-10 clarifies that government assistance to entities that is aimed at encouragement or long-term support of business activities either in certain regions or industry sectors should be accounted for as a government grant under IAS 20. Therefore, such grants should not be credited directly to shareholders' equity even if the grant does not contain any conditions specifically relating to the operating activities of the entity.

Standard history

In April 2001 the International Accounting Standards Board adopted SIC‑10 Government Assistance—No Specific Relation to Operating Activities, which had originally been issued by the Standing Interpretations Committee of the International Accounting Standards Committee in July 1998.