Further presentation points

Learning objectives

• Explain the arguments put forward for each of the two presentations of grants related to income and the useful disclosures about their effect.L2, L3

Normative references

• IAS 20 §30Arguments for each of the two methods of presenting grants related to income: not offsetting income and expenses facilitates comparison, or presenting the net expense is justified because the expense might not have been incurred without the grant.
• IAS 20 §31Both methods are acceptable for grants related to income; disclosure of the grant may be necessary for a proper understanding, and disclosure of its effect on any item of income or expense that is required to be separately disclosed is usually appropriate.

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

1 question

• An entity presents its income grants as a deduction from the related expenses. Which presentation point should it keep in mind?L2