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Contents

24.1 Scope of this section.

24.1.1 Extract from FRS102: Section 24.1 – 24.3.

24.1.1.1 OmniPro comment

24.1.2 Overview.

24.1.2.1 Definition of government grant.

24.1.2.2 Treatment of research and development tax credits and similar assistance.

24.1.2.3 Governments assistance interest free loans.

24.2 Recognition and measurement.

24.2.1 Extract from FRS102: Section 24.3A – 24.5.

24.2.2 OmniPro comment

24.2.2.1 Recognition.

24.2.2.2 Measurement.

24.2.2.2.1 Measurement rules.

24.2.2.2.2 Fair value defined.

24.2.2.2.2.1 Fair value where non-cash items provided by way of grants.

24.2.2.3 Accounting policy choice and impact of change.

24.3 Performance model.

24.3.1 Extract from FRS102: Section 24.5B.

24.3.2 OmniPro comment

24.3.2.1 Definiton of performance related conditions.

24.3.2.2 Difference in treatment between revenue and capital grants.

24.4 Accrual model.

24.4.1 Extract from FRS102: Section 24.5C – 24.5G.

24.4.2 OmniPro comment

24.4.2.1 Overview.

24.4.2.1.1 Requirement to identify the type of grant.

24.4.2.2 Revenue grants.

24.4.2.3 Capital grants.

24.4.2.3.1 Analysis.

24.4.2.3.2 Grants receivable/receivable towards the cost of non-depreciable assets).

24.4.2.3.3 Capital grant examples.

24.5 Classification in the profit and loss.

24.5.1 Revenue grant.

24.5.2 Capital grants.

24.6 Repayment of grants.

24.6.1 Extract from FRS102: Section 24.5A.

24.6.2 OmniPro comment

24.7 Disclosures.

24.7.1 Extract from FRS102: Section 24.6 – 24.7. 

24.7.2 OmniPro comment

24.7.2.1 Analysis.

24.7.2.2 Accounting policies.

24.7.2.2.1 Example using an accruals model.

24.7.2.2.2 Example using the performance model.

24.7.2.3 Notes to the financial statements. 

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Examples

Example 1: Recognition as a receivable.

Example 2: Performance related model – revenue grant.

Example 3: Performance related model – revenue grant – conditions.

Example 4: Performance related model – revenue grant – no conditions.

Example 5: Performance related model – capital grant -conditions.

Example 6: Performance related model – capital grant – no conditions.

Example 6A: Performance related model – capital grant – no conditions.

Example 7: Accruals model – revenue grant.

Example 8: Accruals model – revenue grant 8

Example 9: Accruals model – capital grant – depreciable asset.

Example 10: Accruals model – capital grant (grant provided toward costs of construction with conditions that employment is maintained).

Example 11: Repayment of grant – capital grant – accruals model.

Example 12: Repayment of grant – revenue grant – accruals model.

Example 13: Repayment of grant – capital grant – performance model.

Example 13A: Repayment of grant – capital grant – performance model.

Example 14: Repayment of grant – revenue grant – performance model.

Example 15: Repayment of grant – revenue grant – performance model.

Example 16: Extract from an accounting policy note in the financial statements.

Example 17: Extract from the notes to the financial statements – note on government grants (capital grant).

Example 18: Extract from the notes to the financial statements – note disclosing contingent liabilities.

Example 19: Extract from the notes to the financial statements – note disclosing grant amortisation and government grants received.


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