Repayment of government grants
You'll learn how to account for government grant repayments under IFRS, a critical area for Financial Reporting and Strategic Business Reporting papers.
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In this lesson
- 0:00 Government grant repayment overview
- 0:11 Income-based grant repayment treatment
- 0:37 Capital grant repayment methods
- 0:58 Asset-related deferred income grants
About this lesson
This lesson covers the three main scenarios: income-based grants (where you offset repayments against deferred income first, then expense any excess), capital grants deducted from asset cost (where you increase the asset's carrying amount and adjust depreciation), and capital grants treated as deferred income (where you reduce the deferred balance, expensing any shortfall). The key principle is treating repayments as a change in accounting estimate applied prospectively, not retrospectively, ensuring you handle each grant type correctly in your financial statements.
Duration: 1m
Transcript
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