The form of settlement

Learning objectives

• Explain that the manner in which a grant is received (in cash or as a reduction of a liability to the government) does not change the accounting treatment.L1, L2

Normative references

• IAS 20 §9The manner in which a grant is received (in cash or as a reduction of a liability to the government) does not affect the accounting method adopted for the grant.

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

1 question

• Whether a grant is paid in cash or takes the form of a reduction of a liability the entity owes to the government, the accounting treatment of the grant is the same.L1