IAS 20 and ASPE 3800 Government Grants

Fill-in-the-blank practice flashcards covering IAS 20 and ASPE 3800 standards on government grants, recognition criteria, measurement, and presentation methods.

Under IAS 20, a government grant refers to assistance given to an entity by the government in the form of a transfer of __________.

resources

The two main types of government grants are grants related to income and grants related to __________.

assets

Under IFRS, government grants are recognized when there is reasonable assurance that the entity will comply with attached conditions and the grant will be __________.

received

If a grant is received under IFRS but does not meet the condition criteria, it is initially recorded as a __________.

liability

When a grant relates to expenses in a previous period, it is recognized in the period __________ with no retroactive application.

received

Government grants are initially measured at __________ value.

fair

Grants related to income are recognized as the related expense is __________.

incurred

For a non-depreciable asset such as land, a grant is recognized in income as the grant __________ are fulfilled.

obligations

A __________ loan is treated as a government grant provided standard recognition criteria are met.

forgivable

For repayable loans with favorable interest terms, the benefit treated as a grant is calculated as the loan amount less its __________ value.

discounted

Under IAS 20, an entity receiving a non-monetary grant has the option to recognize it at fair value or at a __________ amount.

nominal

Under the gross method for an income grant, the grant is presented separately as __________.

other income

Under the net method for an income grant, the grant is deducted from the related __________.

expense

Under the net method for an asset grant, the grant is deducted from the asset's __________ amount.

carrying

Under ASPE 3800, grants are recognized when there is reasonable assurance of only __________ criterion/criteria.

one

Under ASPE, non-monetary government grants must be recorded at __________ value, with no option for nominal value.

fair

Unlike IFRS, when a grant related to an asset becomes repayable under ASPE, it does not require a cumulative adjustment for additional __________.

depreciation