New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 19 Government grants

1 Introduction

2 Key differences to previous UK GAAP and IFRS

   2.1 Key differences to previous UK GAAP

       2.1.1 Scope

       2.1.2 Recognition and measurement

       2.1.3 Presentation

   2.2 Key differences to IFRS

       2.2.1 Recognition and measurement

3 requirements of Section 24 for government grants

   3.1 Terms used in Section 24

   3.2 Scope

       3.2.1 Investment tax credits

   3.3 Recognition and measurement

       3.3.1 General conditions for recognition

       3.3.2 Measurement

       3.3.3 Basis of recognition in income

   3.4 The performance model

   3.5 The accrual model

       3.5.1 Grants relating to revenue

       3.5.2 Grants relating to assets

   3.6 Repayment of government grants

   3.7 Presentation

   3.8 Disclosure requirements

4 Summary of GAAP differences

List of Examples

   Example 19.1: UK research and development expenditure credit (RDEC)

   Example 19.2: Grant towards a fixed asset – the performance model

Chapter 19 Government grants

1 Introduction

Section 24 of FRS 102 – Government Grants – covers the accounting and disclosure requirements for government grants. It also covers disclosure requirements for any other forms of government assistance provided to the entity. Government grants typically involve a transfer of resources by a government body to an entity to support specified activities or projects. The transfer of funds is usually dependent on past or future compliance with certain conditions relating ...