CERTYNEX IFRS ACADEMY

During a training session, a participant states that there are two broad approaches to accounting for a government grant. Which description of these approaches, and of the one adopted by IAS 20, is correct?

The capital approach and the income approach; IAS 20 adopts the capital approach for grants related to assets.

The historical cost approach and the fair value approach to the grant; IAS 20 leaves the choice to the entity.

The capital approach, outside profit or loss, and the income approach, over one or more periods; IAS 20 adopts the latter.

Only the income approach, the capital approach not being mentioned by IAS 20.