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

Under Ind AS 20 as notified in India, why does Appendix 1 say requirements on presenting income-related grants in a separate income statement were deleted, while paragraph number 29A was retained?

The separate income statement requirement was deleted because Ind AS 1 removed the two-statement option and requires profit or loss and OCI to appear in a single statement of profit and loss. Paragraph number 29A was retained only to keep numbering consistent with IAS 20.

  1. ADeletion is consequential to Ind AS 1 removing the two-statement option, and 29A is retained to keep paragraph numbering consistent with IAS 20Correct
  2. BDeletion is because grants related to income are not permitted in Ind AS, and 29A is retained for disclosure of grant refunds
  3. CDeletion is because separate income statements are mandatory in Ind AS 1, and 29A is renumbered
  4. DDeletion is because transitional provisions are in Ind AS 101, and 29A is retained for that purpose

Explanation

Appendix 1 states the change is consequential to the removal in Ind AS 1 of the two-statement approach. Ind AS 1 requires profit or loss and OCI components to be in one statement of profit and loss. Paragraph 29A is kept only to maintain consistency of numbering with IAS 20. Option D mixes this up with the omission of paragraph 40 of IAS 20, which relates to transitional provisions.

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