Income vs asset approach

5 min · IAS 20
01 · Concept

Grants are recognised when there is reasonable assurance of compliance and receipt. Match to the related costs they compensate.

  • 01Income approach: defer and release to P&L.
  • 02Asset-related: reduce carrying amount OR present as deferred income.
  • 03Forgivable loans treated as grants once forgiveness is reasonably assured.