CERTYNEX IFRS ACADEMY

An entity receives from a ministry a grant that compensates training costs incurred over several years. Which treatment is consistent with IAS 20?

Credit it directly to equity on the date of receipt.

Recognise it in profit or loss, on a systematic basis, over the periods in which the training costs are recognised.

Recognise it as income only at the end of the programme, once all the training costs have been paid.

Recognise all of it in profit or loss as soon as it is received, whatever the period of the training costs.