In IFRS, if you work for an organization. If you were to recieve a grant from...

In IFRS, if you work for an organization. If you were to recieve a grant from the government to host an event. How would you report it under IAS-20? Would you present it in the " presentation of grants related to assets" or " presentation of grants related to income" How would you report this expenditure? Under an Asset or an Expense?

Expert Solution

A government grant is recognised only when there is reasonable assurance that (a) the entity will comply with any conditions attached to the grant and (b) the grant will be received.

A grant receivable as compensation for costs already incurred or for immediate financial support, with no future related costs, should be recognised as income in the period in which it is receivable. The Grant recieved for hosting an event is a grant for compansation of cost or related to expense.

The reason to not to present this as grant related to asset is in the definition. The definition is:

'Grant related to assets are government grants whose primary condition is that an entity qualifying for them should purchase, construct or otherwise acquire long term asset. Subsidary conditions may also be attached restriciting the type or location of the assets or the periods during which they are to be acquired or hold.'

So as per the definition there is no asset acquiring, constructing or purchasing activity incurred. Therefore this is not considered as grant related to assets.

'Grant related to income are government grants other than those related to assets.'

So, it is now cleat that this should be Present as "Grant related to income".

This should be reported as expenditure. Because to report as an asset we should have an asset for which grant is recieved.

ekkarill92 answered 2 years ago

In IFRS, if you work for a profit organization. If you recieve a sponsorship by the...

In IFRS, if you work for a profit organization. If you recieve a sponsorship by the government for an event, does it satisfy the definition of income? Which IFRS standards apply to the sponsorship? How would the organization present the income for the sponsorship?

In IFRS, when a company gives another company a grant. Why is it treated as a...

In IFRS, when a company gives another company a grant. Why is it treated as a government grant? Explain in detail,please! Thank you!

If your organization is going to apply for a grant, when do you think, if ever,...

If your organization is going to apply for a grant, when do you think, if ever, it would be appropriate to make the application public? What would be the benefits and drawbacks of doing it before the application is submitted? What about after?

Reconciliation from IFRS to GAAP You are the CFO for Mills company (reporting using IFRS) and...

Reconciliation from IFRS to GAAP You are the CFO for Mills company (reporting using IFRS) and must reconcile your financial statements for the years ending 2008, 2009, and 2010 to U.S. GAAP (The Income Statement and Statement Stockholders’ Equity). Youhave identified the following 5 areas where there are differences between IFRS and U.S. GAAP at various dates. Be sure to consider the cumulative effects of prior year transactions for each year. Intangible Assets As part of a business combination in January...

Either where you work, or an organization you are familiar with, do you believe your organization...

Either where you work, or an organization you are familiar with, do you believe your organization uses a flexible or static budget? Why do you think so?

If you were being interviewed and you were a Controller of an organization how would you...

If you were being interviewed and you were a Controller of an organization how would you answer the following questions? What is your main role or task when analyzing working capital. Does your organization lease any of their property or equipment? If so, please give examples of what is being leasing. What is the advantages and disadvantages of leasing?

If you were an HR consultant to an organization, what steps might you recommend an organization...

If you were an HR consultant to an organization, what steps might you recommend an organization take to implement a positive social change initiative? Be specific and use relevant examples to support your response.

You are preparing to pitch a funding proposal for a grant from a national foundation. The...

You are preparing to pitch a funding proposal for a grant from a national foundation. The goal is to acquire $1 million to create an innovative initiative to provide caregiver training for assisted and senior living. You are aiming to teach and hire people from underprivileged backgrounds. How will you pitch your proposal? Be sure to include: What the idea is How the money will be spent Whom you will teach and hire Why you chose this group of potential caregivers...

Dr. Grant Wail, and ER doctor, just told you he received an offer to work at...

Dr. Grant Wail, and ER doctor, just told you he received an offer to work at a local hospital’s ER department. He is required to work 8 shifts per month. Each shift is 10 hours. All medical equipment and supplies are supplied by the hospital. He gets paid by the hospital $200/per hour regardless of how many patients he sees. For all patients assigned to Dr. Wail, he has complete autonomy to exercise his professional medical judgement over patient care...

Canada. Payroll. Ontario The organization you work for is changing their benefit plan system from billed...

Canada. Payroll. Ontario The organization you work for is changing their benefit plan system from billed to self-administered effective December 1 of this year. As the Payroll Manager, prepare a memo for your department outlining the new processes required to administer the plan.

Question