In order for us to be on the same page, before we can move on, it\u2019s important to define the words \u2018government assistance\u2019 and \u2018grant\u2019.\u00a0<\/p>\n
Under \u2018government assistance\u2019 we first need to understand who this government that\u2019s assisting us is. Within IAS 20 (\u2018Accounting for Government Grants and Disclosure of Government Assistance\u2019) the government is defined as government, government agencies and similar bodies whether local, national or international. So it\u2019s not just the government but also other bodies with similar functions as their responsibility (i.e. supporting certain areas through budgeted means). \u2018Government assistance\u2019 in this sense is then an action designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. As it is mentioned, the entities need to fall \u2018under certain criteria\u2019 and thus government assistance is almost always conditional. Once the conditions are met, the assistance shall be provided.<\/p>\n
Now, as for \u2018grant\u2019, IAS 20 defines it as assistance in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. For the sake of clarity, under \u2018operating activities\u2019 one can mean both assets (i.e. purchasing or constructing one) and expenses incurred.<\/p>\n
At least under IAS 20 and I would presume that under most accounting frameworks out there, one would not define tax benefits (for determining taxable profits of an example) as government assistance.<\/p>\n","protected":false},"excerpt":{"rendered":"
In order for us to be on the same page, before we can move on, it\u2019s important to define the words \u2018government assistance\u2019 and \u2018grant\u2019.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68],"tags":[],"class_list":["post-5140","post","type-post","status-publish","format-standard","hentry","category-1-16-donations"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5140"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5140\/revisions"}],"predecessor-version":[{"id":5141,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5140\/revisions\/5141"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5140"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}