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CMA Intermediate · Financial Accounting · Accounting for Government Grants (AS 12)

As per AS 12, the term 'government' covers which of the following?

Under AS 12, government means government, government agencies and similar bodies, whether local, national or international. The definition is broad, so assistance from a municipal body or an international body can qualify as a government grant if the other conditions are met.

  1. AOnly the Central Government of India
  2. BCentral and State Governments but not local bodies
  3. CGovernment, government agencies and similar bodies, whether local, national or internationalCorrect
  4. DOnly bodies wholly owned by the Central Government

Explanation

AS 12 states that government refers to government, government agencies and similar bodies whether local, national or international. So local bodies and international bodies are included. Limiting it to Central or State Governments is too narrow.

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