IAS 20Chapter 4Lesson 1
The income approach: matching the grant to the costs it compensates
Step 1 of 8Learning objectives
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The grant is not credited to equity: it is taken to profit or loss, on a systematic basis, over the periods of the costs it compensates.
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Learning objectives
- Explain the principle of the income approach.
- Calculate the share of grant taken to profit or loss in each period.
- Distinguish a grant matched to future costs from a grant that compensates costs already incurred.