CERTYNEX IFRS ACADEMY

Lindomère receives a government grant to finance a press. Under its accounting policy (case data), it deducts the grant from the carrying amount of the press; tax law, however, uses the full cost of the press as its tax base. Which allocation of roles between the standards is correct?

IAS 20 governs the accounting for the grant; IAS 12 deals with the temporary difference between the carrying amount of the press and its tax base.

IAS 12 governs both the accounting for the grant and the gap between carrying amount and tax base.

IAS 20 governs everything, including tax effects: IAS 12 does not apply to subsidised assets.

No standard deals with the gap, since it results from the entity's choice of policy.