Government Grants (Amendments to IAS 20)

The project has been deferred since February 2006. The Board will continue to monitor progress in other related projects to determine the appropriate timing for activating work on the project.

IAS 20 Accounting for Government Grants and Disclosure of Government Assistance provides guidance on recognising, measuring and disclosing government grants and disclosing other forms of government assistance.

The Board’s objectives in this project were to update IAS 20 to improve the information provided to users of financial statements by:

• eliminating inconsistencies with the Framework, in particular the recognition of a deferred credit when the entity has no liability; and
• eliminating options that can reduce the comparability of financial statements and understate the assets controlled by an entity.