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CA Final · Financial Reporting · Ind AS 20 Accounting for Government Grants and Disclosure of Government Assistance

Ind AS 20 retains paragraph number 29A even though IAS 20 paragraph 29A requires presentation of grants related to income in a separate income statement when one is presented. Why were the related requirements deleted in Ind AS 20?

The requirements were deleted because Ind AS 1 removed the option of presenting a separate income statement. Components of profit or loss and other comprehensive income are presented within the statement of profit and loss, so the separate-statement requirement is consequential and redundant. Paragraph number 29A is retained for consistency with IAS 20.

  1. ABecause grants related to income are not permitted under Ind AS
  2. BBecause grants related to income must always be shown in other comprehensive income
  3. CBecause Ind AS 1 removed the two-statement option, and components of profit or loss and other comprehensive income are presented in the statement of profit and lossCorrect
  4. DBecause transitional provisions for such grants are in Ind AS 101

Explanation

The comparison appendix says the separate income statement requirements were deleted as a consequence of the removal of the two-statement approach in Ind AS 1. Ind AS 1 requires components of profit or loss and other comprehensive income to be part of the statement of profit and loss. The paragraph number 29A was retained for consistency with IAS 20. Option D confuses this with paragraph 40 of IAS 20, which relates to transitional provisions.

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