A company that prepares its financial statements according to International Financial Reporting Standards (IFRS) accounts for a government grant by recognizing revenue for the amount of the grant.

Question

Quizplus · Accepted Answer

Under IFRS, government grants are not recognized as revenue. Instead, they are treated as either deferred income or deducted from the carrying amount of the asset to which they relate, depending on the nature of the grant.

A Company That Prepares Its Financial Statements According to International