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WorkpaperIAS 20 — Accounting for Government Grants and Disclosure of Government AssistanceL2 · L3

Income grant matching file: costs compensated, period and presentation

3 missions10 sections to document55 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

For each income grant (one instance per grant), describe the agreement, enter the amount and the table of costs compensated by period, choose the period to compute, then assess the reasonable assurance and the costs targeted. The allocation basis (here, the proportion of the costs of the period) is a datum of the file, not a rule of the standard. Then prepare the entry: income or deduction from the related expense.

10 sections · 17 blocks · 1 calculation · 2 entries

IAS 20 §7
IAS 20 §12
IAS 20 §20
IAS 20 §21
IAS 20 §22
IAS 20 §29

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

3 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity

Income grant and asset received free of charge: matching to costs and fair value

Case tasks documented here

Does reasonable assurance exist and which costs does the programme grant compensate? Justify.
Compute the share of the programme grant for 20X5.
Record the three forms of support.

Inputs

Income grant: nature, agreement, costs targeted and conditions
Text
SUBVENTION_DE_PROGRAMME_TROIS_ANS
Amount of the grant
Number
240,000
Costs compensated by period (period key, amount)
Table
P1 · 180,000 | P2 · 240,000 | P3 · 180,000
Period for which the share is computed
Choice
Period 1
Period 1 / Period 2 / Period 3 / Period 4

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Points reviewed: assurance, costs compensated, matching, presentation
ChecklistRequired
- Reasonable assurance documented before recognition
- Costs compensated identified
- Systematic matching to the periods of the costs
- Presentation (income line or deduction from the expense) fixed

Calculations

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Share of the grant attributed to the period
Calculation
72,000
Amount of the grant ; Costs compensated by period (period key, amount) ; Period for which the share is computed

Journal entries

Entries

Income grant recognised as income
Entry
Account Debit Credit
Grant receivable 72,000
Grant income 72,000
Grant presented as a deduction from the related expense
Entry
Account Debit Credit
Cash 72,000
Operating expense 72,000

Account	Debit	Credit
Grant receivable	72,000
Grant income		72,000

Account	Debit	Credit
Cash	72,000
Operating expense		72,000

Judgements

Judgment

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Reasonable assurance that the conditions will be met and the grant received
JudgmentRequired
Reasonable assurance
Reasonable assurance / No reasonable assurance
Rule and cross-reference: a grant is recognised only when there is reasonable assurance that the entity will comply with the conditions and receive the grant (IAS 20, para. 7).
Rationale: elements supporting the assurance (agreement, track record, capacity of the entity)
TextRequired
Costs the grant is intended to compensate
JudgmentRequired
Future costs matched period by period
Future costs matched period by period / Costs already incurred or support without future costs
Rule and cross-reference: the grant is recognised in profit or loss on a systematic basis over the periods in which the entity expenses the costs it is intended to compensate (IAS 20, para. 12); a grant for costs already incurred is recognised when it becomes receivable (IAS 20, para. 20).
Rationale: costs targeted by the agreement and period of recognition
TextRequired

Conclusion

Share of the period, presentation and profit or loss entry submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §12IAS 20 §29

Disclosures: presentation and matching
ChecklistRequired
- Presentation of the income grant stated
- Basis of matching to the costs stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Reasonable assurance documentedPass
Recognition entry balancedPass
Deduction entry balancedPass

Assets: 144,000
Liabilities: 0
Profit or loss: 144,000
OCI: 0
Equity: 144,000

File and entity

Income grant and asset received free of charge: matching to costs and fair value

Case tasks documented here

Does reasonable assurance exist and which costs does the programme grant compensate? Justify.
Compute the share of the programme grant for 20X5.
Record the three forms of support.

Inputs

Income grant: nature, agreement, costs targeted and conditions
Text
SUBVENTION_DE_FORMATION_DEJA_ENGAGEE
Amount of the grant
Number
30,000
Costs compensated by period (period key, amount)
Table
P1 · 50,000
Period for which the share is computed
Choice
Period 1
Period 1 / Period 2 / Period 3 / Period 4

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Points reviewed: assurance, costs compensated, matching, presentation
ChecklistRequired
- Reasonable assurance documented before recognition
- Costs compensated identified
- Systematic matching to the periods of the costs
- Presentation (income line or deduction from the expense) fixed

Calculations

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Share of the grant attributed to the period
Calculation
30,000
Amount of the grant ; Costs compensated by period (period key, amount) ; Period for which the share is computed

Journal entries

Entries

Income grant recognised as income
Entry
Account Debit Credit
Grant receivable 30,000
Grant income 30,000
Grant presented as a deduction from the related expense
Entry
Account Debit Credit
Cash 30,000
Operating expense 30,000

Account	Debit	Credit
Grant receivable	30,000
Grant income		30,000

Account	Debit	Credit
Cash	30,000
Operating expense		30,000

Judgements

Judgment

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Reasonable assurance that the conditions will be met and the grant received
JudgmentRequired
Reasonable assurance
Reasonable assurance / No reasonable assurance
Rule and cross-reference: a grant is recognised only when there is reasonable assurance that the entity will comply with the conditions and receive the grant (IAS 20, para. 7).
Rationale: elements supporting the assurance (agreement, track record, capacity of the entity)
TextRequired
Costs the grant is intended to compensate
JudgmentRequired
Costs already incurred or support without future costs
Future costs matched period by period / Costs already incurred or support without future costs
Rule and cross-reference: the grant is recognised in profit or loss on a systematic basis over the periods in which the entity expenses the costs it is intended to compensate (IAS 20, para. 12); a grant for costs already incurred is recognised when it becomes receivable (IAS 20, para. 20).
Rationale: costs targeted by the agreement and period of recognition
TextRequired

Conclusion

Share of the period, presentation and profit or loss entry submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §12IAS 20 §29

Disclosures: presentation and matching
ChecklistRequired
- Presentation of the income grant stated
- Basis of matching to the costs stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Reasonable assurance documentedPass
Recognition entry balancedPass
Deduction entry balancedPass

Assets: 60,000
Liabilities: 0
Profit or loss: 60,000
OCI: 0
Equity: 60,000

File and entity

Government grants file: recognition, presentation, repayment and below-market government loan

Case tasks documented here

Does reasonable assurance exist for supports A and B? Justify.
Compute the share of 20X5 of grant A.
Record the four forms of support.

Inputs

Income grant: nature, agreement, costs targeted and conditions
Text
SUBVENTION_DU_PROGRAMME_DE_FORMATION_AU_NUMERIQUE
Amount of the grant
Number
90,000
Costs compensated by period (period key, amount)
Table
P1 · 100,000 | P2 · 120,000 | P3 · 80,000
Period for which the share is computed
Choice
Period 1
Period 1 / Period 2 / Period 3 / Period 4

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Points reviewed: assurance, costs compensated, matching, presentation
ChecklistRequired
- Reasonable assurance documented before recognition
- Costs compensated identified
- Systematic matching to the periods of the costs
- Presentation (income line or deduction from the expense) fixed

Calculations

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Share of the grant attributed to the period
Calculation
30,000
Amount of the grant ; Costs compensated by period (period key, amount) ; Period for which the share is computed

Journal entries

Entries

Income grant recognised as income
Entry
Account Debit Credit
Grant receivable 30,000
Grant income 30,000
Grant presented as a deduction from the related expense
Entry
Account Debit Credit
Cash 30,000
Operating expense 30,000

Account	Debit	Credit
Grant receivable	30,000
Grant income		30,000

Account	Debit	Credit
Cash	30,000
Operating expense		30,000

Judgements

Judgment

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Reasonable assurance that the conditions will be met and the grant received
JudgmentRequired
Reasonable assurance
Reasonable assurance / No reasonable assurance
Rule and cross-reference: a grant is recognised only when there is reasonable assurance that the entity will comply with the conditions and receive the grant (IAS 20, para. 7).
Rationale: elements supporting the assurance (agreement, track record, capacity of the entity)
TextRequired
Costs the grant is intended to compensate
JudgmentRequired
Future costs matched period by period
Future costs matched period by period / Costs already incurred or support without future costs
Rule and cross-reference: the grant is recognised in profit or loss on a systematic basis over the periods in which the entity expenses the costs it is intended to compensate (IAS 20, para. 12); a grant for costs already incurred is recognised when it becomes receivable (IAS 20, para. 20).
Rationale: costs targeted by the agreement and period of recognition
TextRequired

Conclusion

Share of the period, presentation and profit or loss entry submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §12IAS 20 §29

Disclosures: presentation and matching
ChecklistRequired
- Presentation of the income grant stated
- Basis of matching to the costs stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References

Checks and financial statement impact

Reasonable assurance documentedPass
Recognition entry balancedPass
Deduction entry balancedPass

Assets: 60,000
Liabilities: 0
Profit or loss: 60,000
OCI: 0
Equity: 60,000

Inputs

Income grant: nature, agreement, costs targeted and conditions
Text
Amount of the grant
Number
Costs compensated by period (period key, amount)
Table
Period for which the share is computed
Choice
Period 1 / Period 2 / Period 3 / Period 4

Supporting evidence

Evidence

Evidence obtained and referenced (category, document reference)
EvidenceRequired

Analysis

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Points reviewed: assurance, costs compensated, matching, presentation
ChecklistRequired
- Reasonable assurance documented before recognition
- Costs compensated identified
- Systematic matching to the periods of the costs
- Presentation (income line or deduction from the expense) fixed

Calculations

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Share of the grant attributed to the period
Calculation
Amount of the grant ; Costs compensated by period (period key, amount) ; Period for which the share is computed

Journal entries

Entries

Income grant recognised as income
Entry
Debit Grant receivable ← Share of the grant attributed to the period ; Credit Grant income ← Share of the grant attributed to the period
Grant presented as a deduction from the related expense
Entry
Debit Cash ← Share of the grant attributed to the period ; Credit Operating expense ← Share of the grant attributed to the period

Judgements

Judgment

IAS 20 §7IAS 20 §12IAS 20 §20IAS 20 §21IAS 20 §22IAS 20 §29

Reasonable assurance that the conditions will be met and the grant received
JudgmentRequired
Reasonable assurance / No reasonable assurance
Rule and cross-reference: a grant is recognised only when there is reasonable assurance that the entity will comply with the conditions and receive the grant (IAS 20, para. 7).
Rationale: elements supporting the assurance (agreement, track record, capacity of the entity)
TextRequired
Costs the grant is intended to compensate
JudgmentRequired
Future costs matched period by period / Costs already incurred or support without future costs
Rule and cross-reference: the grant is recognised in profit or loss on a systematic basis over the periods in which the entity expenses the costs it is intended to compensate (IAS 20, para. 12); a grant for costs already incurred is recognised when it becomes receivable (IAS 20, para. 20).
Rationale: costs targeted by the agreement and period of recognition
TextRequired

Conclusion

Share of the period, presentation and profit or loss entry submitted to the reviewer
ConclusionRequired

Effect on the financial statements

FS impact

Effect of the entries, line by line (derived from the entries)
Table

Disclosures

Disclosure

IAS 20 §12IAS 20 §29

Disclosures: presentation and matching
ChecklistRequired
- Presentation of the income grant stated
- Basis of matching to the costs stated

Normative references

References

Paragraphs cited in this workpaper and their verification status
References