IAS 20Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5

WorkpaperIAS 20 — Accounting for Government Grants and Disclosure of Government AssistanceL3 · L4

Grant repayment file

4 missions10 sections to document60 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

For each grant that became repayable (one instance per original presentation method), describe the notification, enter the amount to be repaid and, depending on the method, the deferred income not yet released (deferred income method) or the recalculated depreciation and the depreciation already recognised (deduction method). Compute the surplus to be expensed or the catch-up depreciation, reconcile the deferred income, assess the impairment of the new carrying amount and prepare the entry.

10 sections · 25 blocks · 4 calculations · 2 entries

IAS 20 §32
IAS 20 §33
IAS 20 §39

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

4 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity

Grant that became repayable: deferred income, deduction and catch-up depreciation

Case tasks documented here

Compute the immediate expense for A (cumulative releases already recognised) and for the training grant.
Compute the catch-up depreciation of B.
Reconcile the deferred income of A.
Does the new carrying amount of B call for an impairment loss? Justify.
Record the three repayments.

Inputs

Grant that became repayable: nature, notification and original presentation method
Text
SUBVENTION_A_PRODUIT_DIFFERE_DEVENUE_REMBOURSABLE
Amount to be repaid (deferred income method)
Number
100,000
Deferred income not yet released before the repayment
Number
70,000
Part of the repayment applied against deferred income
Number
70,000
Opening deferred income
Number
80,000
Releases of the period
Number
10,000
Reported closing deferred income
Number
0
Amount to be repaid (deduction method)
Number
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register)
Number
Cumulative depreciation already recognised
Number
Recoverable amount of the asset after the revision (case data, IAS 36 test)
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §32IAS 20 §33IAS 20 §39

Points reviewed: change in estimate, application, catch-up, impairment
ChecklistRequired
- Repayment treated as a change in estimate
- Repayment applied first against unreleased deferred income
- Catch-up depreciation computed on the revised carrying amount
- Impairment test of the new carrying amount performed

Calculations

IAS 20 §32IAS 20 §33IAS 20 §39

Surplus of the repayment to recognise as an immediate expense
Calculation
30,000
Amount to be repaid (deferred income method) ; − Deferred income not yet released before the repayment
Catch-up depreciation = revised cumulative depreciation − depreciation already recognised
Calculation
0
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register) ; − Cumulative depreciation already recognised
Closing deferred income rebuilt
Calculation
0
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income
Deferred income reconciliation difference
Calculation
0
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income

Journal entries

Entries

Repayment applied against deferred income, surplus expensed
Entry
Account Debit Credit
Deferred income 70,000
Operating expense 30,000
Grant refund liability 100,000
Repayment of the deducted grant: carrying amount and catch-up depreciation
Entry
Debit Property, plant and equipment ← Amount to be repaid (deduction method) ; Debit Depreciation expense ← Catch-up depreciation = revised cumulative depreciation − depreciation already recognised ; Credit Grant refund liability ← Amount to be repaid (deduction method) ; Credit Accumulated depreciation ← Catch-up depreciation = revised cumulative depreciation − depreciation already recognised

Account	Debit	Credit
Deferred income	70,000
Operating expense	30,000
Grant refund liability		100,000

Judgements

Judgment

IAS 20 §32IAS 20 §33IAS 20 §39

Presentation method originally adopted for the grant
JudgmentRequired
Deferred income
Deferred income / Deduction from the carrying amount
Rule and cross-reference: a grant that becomes repayable is treated as a change in estimate; the repayment is applied against the deferred income not yet released, the surplus being expensed immediately, or increases the carrying amount of the asset with an immediate additional depreciation (IAS 20, para. 32).
Rationale: original method and resulting treatment of the repayment
TextRequired

Conclusion

Repayment, catch-up and impairment test submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §39

Disclosures: nature and extent
ChecklistRequired
- Nature and extent of the grants recognised stated
- Effect of the repayment on the period stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Original method documentedPass
Deferred income entry balancedPass
Deduction entry balancedNot evaluated

Assets: 0
Liabilities: 30,000
Profit or loss: -30,000
OCI: 0
Equity: -30,000

File and entity

Grant that became repayable: deferred income, deduction and catch-up depreciation

Case tasks documented here

Compute the immediate expense for A (cumulative releases already recognised) and for the training grant.
Compute the catch-up depreciation of B.
Reconcile the deferred income of A.
Does the new carrying amount of B call for an impairment loss? Justify.
Record the three repayments.

Inputs

Grant that became repayable: nature, notification and original presentation method
Text
SUBVENTION_B_DEDUITE_DE_LA_VALEUR_COMPTABLE
Amount to be repaid (deferred income method)
Number
Deferred income not yet released before the repayment
Number
Part of the repayment applied against deferred income
Number
Opening deferred income
Number
Releases of the period
Number
Reported closing deferred income
Number
Amount to be repaid (deduction method)
Number
60,000
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register)
Number
112,500
Cumulative depreciation already recognised
Number
90,000
Recoverable amount of the asset after the revision (case data, IAS 36 test)
Number
220,000

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §32IAS 20 §33IAS 20 §39

Points reviewed: change in estimate, application, catch-up, impairment
ChecklistRequired
- Repayment treated as a change in estimate
- Repayment applied first against unreleased deferred income
- Catch-up depreciation computed on the revised carrying amount
- Impairment test of the new carrying amount performed

Calculations

IAS 20 §32IAS 20 §33IAS 20 §39

Surplus of the repayment to recognise as an immediate expense
Calculation
0
Amount to be repaid (deferred income method) ; − Deferred income not yet released before the repayment
Catch-up depreciation = revised cumulative depreciation − depreciation already recognised
Calculation
22,500
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register) ; − Cumulative depreciation already recognised
Closing deferred income rebuilt
Calculation
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income
Deferred income reconciliation difference
Calculation
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income

Journal entries

Entries

Repayment applied against deferred income, surplus expensed
Entry
Debit Deferred income ← Part of the repayment applied against deferred income ; Debit Operating expense ← Surplus of the repayment to recognise as an immediate expense ; Credit Grant refund liability ← Amount to be repaid (deferred income method)
Repayment of the deducted grant: carrying amount and catch-up depreciation
Entry
Account Debit Credit
Property, plant and equipment 60,000
Depreciation expense 22,500
Grant refund liability 60,000
Accumulated depreciation 22,500

Account	Debit	Credit
Property, plant and equipment	60,000
Depreciation expense	22,500
Grant refund liability		60,000
Accumulated depreciation		22,500

Judgements

Judgment

IAS 20 §32IAS 20 §33IAS 20 §39

Presentation method originally adopted for the grant
JudgmentRequired
Deduction from the carrying amount
Deferred income / Deduction from the carrying amount
Rule and cross-reference: a grant that becomes repayable is treated as a change in estimate; the repayment is applied against the deferred income not yet released, the surplus being expensed immediately, or increases the carrying amount of the asset with an immediate additional depreciation (IAS 20, para. 32).
Rationale: original method and resulting treatment of the repayment
TextRequired

Conclusion

Repayment, catch-up and impairment test submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §39

Disclosures: nature and extent
ChecklistRequired
- Nature and extent of the grants recognised stated
- Effect of the repayment on the period stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Original method documentedPass
Deferred income entry balancedNot evaluated
Deduction entry balancedPass

Assets: 37,500
Liabilities: 60,000
Profit or loss: -22,500
OCI: 0
Equity: -22,500

File and entity

Grant that became repayable: deferred income, deduction and catch-up depreciation

Case tasks documented here

Compute the immediate expense for A (cumulative releases already recognised) and for the training grant.
Compute the catch-up depreciation of B.
Reconcile the deferred income of A.
Does the new carrying amount of B call for an impairment loss? Justify.
Record the three repayments.

Inputs

Grant that became repayable: nature, notification and original presentation method
Text
SUBVENTION_DE_FORMATION_SANS_PRODUIT_DIFFERE
Amount to be repaid (deferred income method)
Number
15,000
Deferred income not yet released before the repayment
Number
Part of the repayment applied against deferred income
Number
Opening deferred income
Number
Releases of the period
Number
Reported closing deferred income
Number
Amount to be repaid (deduction method)
Number
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register)
Number
Cumulative depreciation already recognised
Number
Recoverable amount of the asset after the revision (case data, IAS 36 test)
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §32IAS 20 §33IAS 20 §39

Points reviewed: change in estimate, application, catch-up, impairment
ChecklistRequired
- Repayment treated as a change in estimate
- Repayment applied first against unreleased deferred income
- Catch-up depreciation computed on the revised carrying amount
- Impairment test of the new carrying amount performed

Calculations

IAS 20 §32IAS 20 §33IAS 20 §39

Surplus of the repayment to recognise as an immediate expense
Calculation
15,000
Amount to be repaid (deferred income method) ; − Deferred income not yet released before the repayment
Catch-up depreciation = revised cumulative depreciation − depreciation already recognised
Calculation
0
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register) ; − Cumulative depreciation already recognised
Closing deferred income rebuilt
Calculation
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income
Deferred income reconciliation difference
Calculation
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income

Journal entries

Entries

Repayment applied against deferred income, surplus expensed
Entry
Account Debit Credit
Operating expense 15,000
Grant refund liability 15,000
Repayment of the deducted grant: carrying amount and catch-up depreciation
Entry
Debit Property, plant and equipment ← Amount to be repaid (deduction method) ; Debit Depreciation expense ← Catch-up depreciation = revised cumulative depreciation − depreciation already recognised ; Credit Grant refund liability ← Amount to be repaid (deduction method) ; Credit Accumulated depreciation ← Catch-up depreciation = revised cumulative depreciation − depreciation already recognised

Account	Debit	Credit
Operating expense	15,000
Grant refund liability		15,000

Judgements

Judgment

IAS 20 §32IAS 20 §33IAS 20 §39

Presentation method originally adopted for the grant
JudgmentRequired
Deferred income / Deduction from the carrying amount
Rule and cross-reference: a grant that becomes repayable is treated as a change in estimate; the repayment is applied against the deferred income not yet released, the surplus being expensed immediately, or increases the carrying amount of the asset with an immediate additional depreciation (IAS 20, para. 32).
Rationale: original method and resulting treatment of the repayment
TextRequired

Conclusion

Repayment, catch-up and impairment test submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §39

Disclosures: nature and extent
ChecklistRequired
- Nature and extent of the grants recognised stated
- Effect of the repayment on the period stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Original method documentedNot filled in this instance
Deferred income entry balancedPass
Deduction entry balancedNot evaluated

Assets: 0
Liabilities: 15,000
Profit or loss: -15,000
OCI: 0
Equity: -15,000

File and entity

Government grants file: recognition, presentation, repayment and below-market government loan

Case tasks documented here

Compute the cumulative releases of X to be expensed on repayment.
Reconcile the deferred income of X.
Record the four forms of support.

Inputs

Grant that became repayable: nature, notification and original presentation method
Text
SUBVENTION_X_A_PRODUIT_DIFFERE_DEVENUE_REMBOURSABLE
Amount to be repaid (deferred income method)
Number
80,000
Deferred income not yet released before the repayment
Number
50,000
Part of the repayment applied against deferred income
Number
50,000
Opening deferred income
Number
65,000
Releases of the period
Number
15,000
Reported closing deferred income
Number
0
Amount to be repaid (deduction method)
Number
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register)
Number
Cumulative depreciation already recognised
Number
Recoverable amount of the asset after the revision (case data, IAS 36 test)
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §32IAS 20 §33IAS 20 §39

Points reviewed: change in estimate, application, catch-up, impairment
ChecklistRequired
- Repayment treated as a change in estimate
- Repayment applied first against unreleased deferred income
- Catch-up depreciation computed on the revised carrying amount
- Impairment test of the new carrying amount performed

Calculations

IAS 20 §32IAS 20 §33IAS 20 §39

Surplus of the repayment to recognise as an immediate expense
Calculation
30,000
Amount to be repaid (deferred income method) ; − Deferred income not yet released before the repayment
Catch-up depreciation = revised cumulative depreciation − depreciation already recognised
Calculation
0
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register) ; − Cumulative depreciation already recognised
Closing deferred income rebuilt
Calculation
0
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income
Deferred income reconciliation difference
Calculation
0
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income

Journal entries

Entries

Repayment applied against deferred income, surplus expensed
Entry
Account Debit Credit
Deferred income 50,000
Operating expense 30,000
Grant refund liability 80,000
Repayment of the deducted grant: carrying amount and catch-up depreciation
Entry
Debit Property, plant and equipment ← Amount to be repaid (deduction method) ; Debit Depreciation expense ← Catch-up depreciation = revised cumulative depreciation − depreciation already recognised ; Credit Grant refund liability ← Amount to be repaid (deduction method) ; Credit Accumulated depreciation ← Catch-up depreciation = revised cumulative depreciation − depreciation already recognised

Account	Debit	Credit
Deferred income	50,000
Operating expense	30,000
Grant refund liability		80,000

Judgements

Judgment

IAS 20 §32IAS 20 §33IAS 20 §39

Presentation method originally adopted for the grant
JudgmentRequired
Deferred income
Deferred income / Deduction from the carrying amount
Rule and cross-reference: a grant that becomes repayable is treated as a change in estimate; the repayment is applied against the deferred income not yet released, the surplus being expensed immediately, or increases the carrying amount of the asset with an immediate additional depreciation (IAS 20, para. 32).
Rationale: original method and resulting treatment of the repayment
TextRequired

Conclusion

Repayment, catch-up and impairment test submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §39

Disclosures: nature and extent
ChecklistRequired
- Nature and extent of the grants recognised stated
- Effect of the repayment on the period stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Original method documentedPass
Deferred income entry balancedPass
Deduction entry balancedNot evaluated

Assets: 0
Liabilities: 30,000
Profit or loss: -30,000
OCI: 0
Equity: -30,000

Inputs

Grant that became repayable: nature, notification and original presentation method
Text
Amount to be repaid (deferred income method)
Number
Deferred income not yet released before the repayment
Number
Part of the repayment applied against deferred income
Number
Opening deferred income
Number
Releases of the period
Number
Reported closing deferred income
Number
Amount to be repaid (deduction method)
Number
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register)
Number
Cumulative depreciation already recognised
Number
Recoverable amount of the asset after the revision (case data, IAS 36 test)
Number

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §32IAS 20 §33IAS 20 §39

Points reviewed: change in estimate, application, catch-up, impairment
ChecklistRequired
- Repayment treated as a change in estimate
- Repayment applied first against unreleased deferred income
- Catch-up depreciation computed on the revised carrying amount
- Impairment test of the new carrying amount performed

Calculations

IAS 20 §32IAS 20 §33IAS 20 §39

Surplus of the repayment to recognise as an immediate expense
Calculation
Amount to be repaid (deferred income method) ; − Deferred income not yet released before the repayment
Catch-up depreciation = revised cumulative depreciation − depreciation already recognised
Calculation
Cumulative depreciation recalculated on the revised carrying amount (IAS 16 register) ; − Cumulative depreciation already recognised
Closing deferred income rebuilt
Calculation
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income
Deferred income reconciliation difference
Calculation
Opening deferred income ; Reported closing deferred income ; − Releases of the period ; − Part of the repayment applied against deferred income

Journal entries

Entries

Repayment applied against deferred income, surplus expensed
Entry
Debit Deferred income ← Part of the repayment applied against deferred income ; Debit Operating expense ← Surplus of the repayment to recognise as an immediate expense ; Credit Grant refund liability ← Amount to be repaid (deferred income method)
Repayment of the deducted grant: carrying amount and catch-up depreciation
Entry
Debit Property, plant and equipment ← Amount to be repaid (deduction method) ; Debit Depreciation expense ← Catch-up depreciation = revised cumulative depreciation − depreciation already recognised ; Credit Grant refund liability ← Amount to be repaid (deduction method) ; Credit Accumulated depreciation ← Catch-up depreciation = revised cumulative depreciation − depreciation already recognised

Judgements

Judgment

IAS 20 §32IAS 20 §33IAS 20 §39

Presentation method originally adopted for the grant
JudgmentRequired
Deferred income / Deduction from the carrying amount
Rule and cross-reference: a grant that becomes repayable is treated as a change in estimate; the repayment is applied against the deferred income not yet released, the surplus being expensed immediately, or increases the carrying amount of the asset with an immediate additional depreciation (IAS 20, para. 32).
Rationale: original method and resulting treatment of the repayment
TextRequired

Conclusion

Repayment, catch-up and impairment test submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §39

Disclosures: nature and extent
ChecklistRequired
- Nature and extent of the grants recognised stated
- Effect of the repayment on the period stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References