Other government assistance

Learning objectives

• Explain the treatment of, and disclosures about, forms of government assistance other than grants.L2, L3

Normative references

• IAS 20 §34Excluded from the definition of government grants: government assistance that cannot reasonably have a value placed upon it and transactions with government that cannot be distinguished from the normal trading transactions of the entity.
• IAS 20 §35Examples of assistance that cannot reasonably be valued or distinguished from normal transactions: free technical or marketing advice, the provision of guarantees, a government procurement policy.
• IAS 20 §36The significance of the benefit from government assistance may be such that disclosure of its nature, extent and duration is necessary.
• IAS 20 §38The provision of general infrastructure (transport and communication networks, irrigation, water reticulation) made available on an ongoing basis for the benefit of an entire local community is not government assistance within the meaning of the Standard.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• A public agency provides an entity with free technical advice whose value cannot reasonably be estimated. Which of these statements are accurate? (More than one answer possible.)L2