Exposure Draft
on
Accounting for Government
Grants and
Subsidies
Introduction :
Within the effort that the GCC Accounting and Auditing Organization (GCCAAO) makes to promote the profession of accounting and auditing and enhance its status in the GCC countries, GCCAAO board established a strategic plan for preparing the features of the profession, including preparation of accounting standards. In the light of that, the board decided to form a committee (Accounting standards Committee) to undertake preparation and development of accounting standards by which all entities irrespective of its activity or legal form, shall comply with when preparing their financial statements.
Due to the importance of the subjects of : accounting
for government grants and subsidies, accounting for investments using equity
method, and accounting for income tax, the Committee decided to prepare a
standard for each of these topics and assigned professor Ismail
gomaa to prepare the three standards. In the light of
the comments made by members the committee discussed the exposure drafts and
the accompanying studies and approved it during its meeting held on sha'ban 8-9, 1425H
corresponding to
These standards will be completed in accordance with the preparation stages stipulated in the standards preparation by-law (a copy of it is attached.
Best regards
Dr. Osama Bin Fahd
Al-Haizan
Acting Executive Director
Stages and step followed in
preparation of standards
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Implementation
stages |
Implementation |
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Responsible
party |
Period |
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1 |
First stage : Selection of Consultant |
Accounting standards committee |
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2 |
Second stage : Preparation of study on the standard: |
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Preparation of study |
The Consultant |
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Study of the draft study by members of the committee. |
Accounting standards Committee. |
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Meeting of committee and study of member's comments. |
Accounting standards Committee. |
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Amendment to the study by the consultant and its approval and distribution by Committee. |
The Consultant / the Committee |
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3 |
Third stage : Soliciting opinion of specialized and interested parties
on the study : |
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Study of draft study by specialized and interested parties. |
Specialized and interested parties. |
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Classification and analysis of Comments made by specialized and interested parties. |
Committee Secretariat |
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Discussion by Committee to Comments made by specialized and interested parties. |
Committee Secretariat / Committee |
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Summarizing Committee decisions. |
Committee Secretariat |
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Study and discussion of the Summary by members. |
Accounting standards Committee. |
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4 |
Fourth stage : Preparation of exposure draft |
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Preparation of exposure draft |
Consultant/Committee Secretariat |
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Study and discussion of draft study by members of Committee. |
Accounting standards committee. |
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Preparation of exposure draft by consultant and its approval by Committee. |
Consultant/Committee |
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5 |
Fifth stage : Publication of the exposure draft and its discussion in
a symposium : |
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Study of exposure draft by members of the board and committees. |
Members of Board and committees. |
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Classification and study of comments made by members of Board and technical Committees. |
Consultant/Committee Secretariat. |
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Approval of exposure draft before publication |
Accounting standards Committee |
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Publication of exposure draft. |
GCCAAO |
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Discussion of exposure draft in public symposium. |
GCCAAO |
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6 |
Sixth stage: Preparation of final formulation of standard : |
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Preparation of final exposure draft by Consultant. |
Consultant. |
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Study of final exposure draft by Consultant Study of final exposure draft Committee's members. |
Accounting standards Committee. |
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Summarizing comments made by members. |
Committee Secretariat |
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Discussion of comments of Committee's members about the final exposure draft. |
Consultant / Committee |
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7. |
Seventh stage : Approval and promulgation of standard : |
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Discussion by the Board to the exposure draft approved by Committee. |
Board of directors. |
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Discussion by committee to comments made by the Board. |
Accounting standards Committee. |
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Amendment of exposure draft in the light of the Board's comments. |
Consultant / Committee |
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Approval of final exposure draft by the committee in its final form. |
Accounting standards Committee |
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8 |
Eighth Stage : Identification of extent of compliance with the standard. |
GCCAAO |
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9 |
Ninth stage : Amendment to the standard |
GCCAAO |
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Contents
Exposure Draft on Accounting for Government
Grants and Subsidies
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# |
Subject |
Page |
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1 |
Scope |
33 |
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2 |
Objective |
34 |
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3 |
Statement of the Standard |
34 |
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4 |
Presentation |
38 |
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5 |
Disclosures |
39 |
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6 |
Definitions |
40 |
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7. |
Analytical comparative Study. |
45 |
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8. |
Practical cases and examples for application of the standard. |
67 |
Exposure Draft on Accounting for Government
Grants and Subsidies
1. Scope :
This standard identifies the requirements for the measurement, presentation and disclosure of government grants and Subsidies for profit-making enterprises, irrespective of their size and legal form.
(Paragraph 101)
1.2 This standard does not apply to :
1.2.1 Government's participation in the ownership of profit-making enterprises, whether by cash or in-kind.
(Paragraph 102)
1.2.2 Government's contributions provided in the form of taxation benefits when determining taxable income.
(Paragraph 103)
1.2.3 Voluntary/ free services or works executed at less than market value.
(Paragraph 104)
1.2.4 Any government assistance not subject to accounting measurement e.g. government actions aimed at achieving the optimal economic use of the available recourse and services rendered for the development of an area or industry in general and not designed to achieve specific benefit for the enterprise.
(Paragraph 105)
1.3 This standard applies to material items.
(Paragraph 106)
1.4 Paragraphs of this standard shall be read within the context of the framework of financial accounting and the standard for general presentation and disclosure approved by GCCAAO.
(Paragraph 107)
2. The Objective
The objective of the standard is to identify the requirements for the measurement, recognition, presentation and disclosure of government grants Subsidies so that the financial statements will present fairly the financial position and results of the operations of the enterprise.
(Paragraph 108)
3. The Statement :
Measurement and recognition of government Subsidies :
3.1 Government subsidies should be measured and recognized at the fair value of assets received against a commitment by the enterprise to implement the specific government policies/programs agreed upon. The accounting treatment is determined based on the sources of subsidies and nature of the related events, as follows :
3.1.1 Government Subsidies (compensations or contributions) made against (or as a result of) the effect of the continuing main operations of an enterprise by specific government policies/programs, should be measured as increases of assets or decreases of liabilities or both and be recognized, on meeting the conditions provided in (3.1.6) below, as revenues in due period.
(Paragraph 109)
3.1.2 Government Subsidies (compensations or contributions), made against or as a result of the effect of casual or minor operations of the enterprise and/or other events by specific government policies/ programs should be measured based on the increase in the owner's equity (net assets) for the period and be recognized as gains, on meeting the conditions provided in (3.1.6) below, in due period.
(Paragraph 110)
3.1.3 Government Subsidies in the form of immediate financial support in extraordinary circumstances or as compensation for expenses and losses incurred by the enterprise in prior periods (extraordinary circumstances) should be measured at the fair value of assets donated and be recognized, on meeting the conditions provided in (3.1.6) below, as " extraordinary gains when received
(Paragraph 111)
3.1.4 If the granting government decided to refund, partially or wholly, the grant paid, then the refunded grand should be measured as a decrease in the owner's equity (net assets) and be recognized as reduction in revenue, or a loss, as the nature of the underlying event may be.
(Paragraph 112)
3.1.5 Government Subsidies received as advances to be used for more than one financial period should be measured at the fair value of asset donated and recognized as deferred revenue when received. The amount received shall be distributed over benefited accounting periods and in a way that facilitate its comparability with related expenses, according to the nature of the underlying event.
(Paragraph 113)
3.1.6 The following conditions should be collectively met upon the recognition of government Subsidies.
a) Assets given as a subsidy can be obtained through a reasonable degree of trust.
b) The enterprise can implement government policies or programs through a reasonable degree of trust.
c) Fair value of the subsidy can be determined in a reliable degree of accuracy.
d) Expenditures, expenses and losses related to the subsidy can be documented.
(Paragraph 114)
3.2 Measurement and
recognition of government grants :
3.2.1 Measurement and recognition of government grants at the date
of the receipt of the asset.
Government grants should be recognized at the fair value of assets received against the enterprise's compliance to implement the policies, programs, and conditions attaching to it. The accounting treatment will be determined in the light of the nature of the underlying events, as follows :
3.2.1.1 Gratuitous government grants received by the enterprise from a governmental agency with no sacrifice of assets or requirement to settle liabilities or imposition of restrictions, shall be measured at the fair value of the contributed assets and recognized, when the conditions provided in (3.2.1.4) below are met, as gratuitous governmental grants in the owner's equity.
(Paragraph 115)
3.2.1.2 Conditional government grants shall be measured when the conditions provided in (3.2.1.4) below are met, at the fair value of assets contributed and recognized in liabilities as conditional governments grants.
(Paragraph 116)
3.2.1.3 Restricted government grants should be measured when the conditions provided in (3.2.1.4) below are met at the fair value of assets contributed and recognized as restricted government grants in the owner's equity. .
(Paragraph 117)
3.2.1.4 The following conditions shall be collectively met upon the recognition of the government grants.
a) The receipt of the contributed assets is reasonably certain.
b) The enterprise should comply to satisfactorily implement the government policy or program.
c) The fair value can be determined with a reliable accuracy.
d) Expenditure, expenses and losses related to the grant can be documented.
(Paragraph 118)
3.2.2 Measurement and recognition of government grants after the
receipt of the asset.
3.2.2.1 A conditional government grants should be measured at historical amount of donated assets if conditions attached to it have not been fulfilled, and should continually be recognized as liabilities. If the conditions attached to it have been fulfilled, it should be reclassified as gratuitous grants based on the historical value of assets donated.
(Paragraph 119)
3.2.2.2 A restricted government grants should be measured at historical value of assets donated and be reclassified as gratuitous government grants on the expiration of the restriction.
(Paragraph 120)
3.2.2.3 If the enterprise did not comply with restriction upon which the asset is donated, restricted government grants should be recognized at net book value as liabilities on realization of noncompliance.
(Paragraph 121)
3.2.2.4 Government grants and any assets and/or rights relating to it should be reclassified, if necessary, under the stipulations of the contribution and should be measured at net book value of assets contributed at the date of reclassification.
(Paragraph 122)
3.2.2.5 Refundable government grants and attaching assets should be measured at net book value of refunded donated assets and be recognized as liabilities at the date of occurance. Differences, if any, between the amounts specified by the government and the carrying value, should be recognized as gains or losses when occurred.
(Paragraph 123)
3.2.2.6 Costs arising from non-compliance within the conditions or restrictions from execution of the government policy/program should be recognized as losses when incurred.
(Paragraph 124)
4. The Presentation :
4.1 Presentation of
government subsidies :
4.1.1 Government subsidies should be included in the statement of income as a separate component under income or gains or extraordinary gains, depending on the nature of the underlying event.
(Paragraph 125)
4.1.2 Government subsidies received as advances to be used for more than one period should be included in the balance sheets as a separate component under deferred revenues
(Paragraph
126)
4.1.3 Accrued government subsidies should be included as separate component in the balance sheet and classified according to its nature.
(Paragraph
127)
4.1.4 Cash flows generating from the collection of subsidies pertaining to the operating transactions should be classified in the cash flow statement under cash flows from operating activities.
(Paragraph
128)
4.1.5 Cash flows generated from the collection of government subsidies against dividends should be classified in the statement of cash flows under cash flows from financing activities.
(Paragraph
129)
4.2 Presentation of
government grants :
4.2.1 Assets contributed should be included in the balance sheet each as a separate item under "gratuitous contributed assets" or "conditional contributed assets" or restricted contributed assets" depending on its contribution stipulations. Accumulated depreciation shall be deducted from the cost of related assets.
(Paragraph 130)
4.2.2 Gratuitous government grants and restricted government grants should be included in the balance sheet each as a separate component under "owners, equity".
(Paragraph 131)
4.2.3 Conditional government grants should be included in the balance sheet as a separate component under " Liabilities" and after meeting the conditions be shown under owner's equity as grantuitous government grants
(Paragraph 132)
4.2.4 Depreciation expense of contributed assets and costs resulting from non-compliance should be shown in the statement of income each as separate item according the nature of the underling event.
(Paragraph 133)
4.2.5 Cash flows from government grants should be shown in the statement of cash flows within cash flows from investing activities, and cash flows from investment of government grant should be shown in the cash flows statement within cash flows from operating activities.
(Paragraph 134)
5. Disclosure of government grants and subsidies
:
The financial statements should disclose the following :
5.1 The accounting treatment adopted for the government grants and subsidies including methods of presentation of the financial statements.
(Paragraph 135)
5.2 The nature, extent and number of the government grants and subsidies and other forms of government assistance from which the enterprise has directly benefited/will benefit, which has material effect on the results of the entity's activities during the period for coming periods.
(Paragraph 136)
5.3 Unfulfilled conditions and other contingencies attaching to the government grants that has been recognized.
(Paragraph 137)
5.4 The movement in government grants and subsidies and the components of amounts received from the government agency during the period.
(Paragraph
138)
5.5 The components of the government grants and subsidies balance at the end of the financial period.
(Paragraph 139)
5.6 Conditions which led to a change in the classification of the government grants and assets attached to it, if any.
(Paragraph 140)
6. Definitions :
6.1 Government agency :
Government refers to the granting government agencies whether local, national or international. It refers also to Quasi government institutions where the government has control on the financial and operational policies of the enterprise in accordance with the control concept as set out in the respective standards.
(Paragraph
141)
6.2 Government grants and
contributions.
These comprise transfer of cash or other assets to an enterprise, a settlement or reduction of its liabilities against its commitment to implement specific government policies /programs.
Government contributions : Are short term transfers to finance transactions related to the continuing operations of an enterprise or to finance the enterprise's requirement in unusual and extraordinary circumstances.
Government grants : Are long term transfers to finance the transactions related to the investing activities of the enterprise.
(Paragraph
142)
6.3 Fair value of assets contributed : Is the market value of the assets contributed if available at the date of granting. If the market value is not available, the fair value of similar assets will be considered as a fair value in accordance with methods of valuation adopted or government agency's estimates will be taken if such methods are not available.
(Paragraph 143)
6.4 Costs arising from the compliance with implementation of the government policy/ program : is the excess in the costs associated with the compliance of the government policy/ program over the amount of the government grant/ contribution due.
(Paragraph 144)
6.5 Costs arising from non-compliance with implementation of the government policy/ program : is the amount of penalties and fines arising from non-compliance with implementation of the instructions that are clearly and specifically stated in the government policy / program.
(Paragraph 145)
6.6 Cash Assets : Comprise cash or a right to receive an identified / identifiable cash amount, without compliance with prices of goods and services in the future.
(Paragraph 146)
6.7 Non-Cash Assets : Comprise investments, land, buildings, inventories, facilities and an unconditional promise to give, that are reasonably measurable.
(Paragraph 147)
6.8 Unconditional Promise to Give : Is an agreement whereby the enterprise will receive an asset or settle a liability to the government agency in the future, with reasonable evidence that, the assets is measurable, recognizable and has assets characteristics.
(Paragraph 148)
6.9 Absolute Government grants: Refers to the unconditional and unrestricted government grants.
(Paragraph 149)
6.10 Conditional government grants : refers to cash and non-cash assets transferred from granting agency to the enterprise conditioned by occurance of future events imposed by granting agency (on transfer of donated assets or on a promise to transfer).
The granting agency will be given the right to refund the assets if conditions are not fulfilled.
(Paragraph 150)
6.11 Restricted government grants : refers to cash and non-cash assets transferred from granting agency to the enterprise with implicit or explicit instructions by which granting agency restrict the use of donated assets by the enterprise to specific use. Restriction may be for a limited period of time.
(Paragraph
151)
6.12 Refundable government grants : Refers to conditioned or restricted government grants a right of return to the government if the enterprise has not fulfilled the conditions attached to the government grant on contribution.
(Paragraph 152)
6.13 Net book value of donated assets :
It is the historical cost of donated assets adjusted the accumulated depreciation.
(Paragraph
153)
Analytical Comparative Study
Main topic : The Scope of standard
Sub-
topic :
The title of standard : The standard on accounting for government
grants and subsidies
|
Standards
approved in |
Standards approved
in some of GCC Countries (International standards) |
Comparison |
Conclusion |
Proposed
statements |
Reasons |
|
This standard identifies the requirements for the measurement, presentation and disclosure of government grants and subsidies for profit-making enterprises, irrespective of their size and legal form. · This standard does not apply to: - Government's participation in the ownership of profit-making enterprises, whether by cash or in-kind. - Government's contributions provided in the form of taxation benefits when determining taxable income. - Voluntary/ free services or works executed at less than market value. - Any government assistance not subject to accounting measurement e.g. government actions aimed at achieving the optimal economic use of the available recourse and services rendered for the development of an area or industry in general and not designed to achieve specific benefit for the enterprise. · This standard applies to material items. - Paragraphs of this standard shall be read within the context of the framework of financial accounting and the standard for general presentation and disclosure approved by SOCPA. |
1. This Standard should be applied in accounting for, and in the disclosure of, government grants and in the disclosure of other forms of government assistance. 2. This Standard does not deal with : a. The special problems arising in accounting for government grants in financial statements reflecting the effects of changing prices or in supplementary information of a similar nature. b. government assistance that is provided for an enterprise in the form of benefits that are available in determining taxable income or are determined or limited on the basis of income tax liability (such as income tax holidays, investment tax credits, accelerated depreciation allowances and reduced income tax rates), and c. Government participat-ion in the ownership of the enterprise |
The two standards agree with respect to the scope although the Saudi standard has a more definite scope, as it includes identifications of the requirements for measurement and recognition of government grants and subsidies and their presentation and disclosure in the financial statements of profit-making enterprises irrespective of their size and legal form. |
Limited difference |
This standard identifies the requirements for the measurement, presentation and disclosure of government grants and subsidies for profit-making enterprises, irrespective of their size and legal form. · This standard does not apply to: - Government's participation in the ownership of profit-making enterprises, whether by cash or in-kind. - Government's contributions provided in the form of taxation benefits when determining taxable income. - Voluntary/ free services or works executed at less than market value. - Any government assistance not subject to accounting measurement e.g. government actions aimed at achieving the optimal economic use of the available recourse and services rendered for the development of an area or industry in general and not designed to achieve specific benefit for the enterprise. · This standard applies to material items. - Paragraphs of this standard shall be read within the context of the framework of financial accounting and the standard for general presentation and disclosure approved by GCCAAO. |
Saudi standard is more definite with respect to its scope there-fore, it is suggested to be used for formulating the proposed text. |
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|
Analytical Comparative Study
Main topic : Objective of standard
The title of standard : The standard on
accounting for government grants and subsidies
Sub- topic :
Standards approved in
|
Standards approved in some of GCC Countries
(International standards)
|
Comparison
|
Conclusion
|
Proposed statements
|
Reasons
|
Analytical Comparative Study
Main topic :
Measurement and recognition
of
government subsidies
Sub- topic :
The title of standard : The standard on
accounting for government grants and subsidies
|
Standards
approved in |
Standards
approved in some of GCC Countries (International standards) |
Comparison |
Conclusion |
Proposed statements |
Reasons |
|
Government subsidies should be measured and
recognized at the fair value of assets received against a commitment by the
enterprise to implement the specific government policies/programs agreed
upon. The accounting treatment is determined based on the sources of
subsidies and nature of the related events, as follows : - Government subsidies (com-pensations
or contributions) made against (or as a result of) the effect of the
continuing main operations of an enterprise by specific government policies/
programs, should be measured as increases of assets or decreases of
liabilities or both and be recognized, on meeting the conditions provided in
(3.1.6) below, as revenues in due period. - Government subsidies (com-pensations or contributions), made against or as a result of the effect of casual or minor operations of the enterprise and/or other events by specific government policies/ programs should be measured based on the increase in the owner's equity (net assets) for the period and be recognized as gains, on meeting the conditions provided in (3.1.6) below, in due period. - Government Subsidies in the form of immediate financial support in extraordinary circumstances or as compensation for expenses and losses incurred by the enterprise in prior periods (extraordinary circumsta-nces) should be measured at the fair value of assets donated and be recognized, on meeting the conditions provided in (3.1.6) below, as "extraordinary gains when received. - If the granting government decided to refund, partially or wholly, the grant paid, then the refunded grand should be measured as a decrease in the owner's equity (net assets) and be recognized as reduction in revenue, or a loss, as the nature of the underlying event may be. - Government subsidies received as advances to be used for more than one financial period should be measured at the fair value of asset donated and recognized as deferred revenue when received. The amount received shall be distributed over benefited accounting periods and in a way that facilitate its comparability with related expenses, according to the nature of the underlying event. - The following conditions should be collectively met upon the recognition of government subsidies. a) Assets given as a subsidy can be obtained through a reasonable degree of trust. b) The enterprise can implement government policies or programs through a reasonable degree of trust. c) Fair value of the subsidy can be determined in a reliable degree of accuracy. d) Expenditures, expenses and losses related to the
subsidy can be documented. |
- Government grants shall be measured by the amount of cash transfers and fair value of in-kind assets. - Assets and grants values may be recognized by nominal amounts. - Government grants should be recognized as income over the periods necessary to match them with the related costs which they are intended to compensate, on a systematic basis. - A grant should not be credited directly to owners' equity. - Recognition of government grants as income on cash basis does not comply with accounting on accrual basis. Cash basis is not acceptable unless there is no other basis for allocating the grant over other periods than those periods during which the grant is received. - Government grants that become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the enterprise with no future related costs should be recognized as income of the period in which it becomes receivable, as an extraordinary item. - Governments grants that become repayable should be accounted for as a revision to the accounting estimates. Repayment of a grant related to income should be applied first against any unamortized differed credit set up in respect of grant. To the extent that the repayment exceeds any such deferred credit, or where no deferred credit exists, the repayment should be recognized immediately as an expense. |
No significant difference in the texts of the two statements. There is some difference in wording and formulation. The text of Saudi standard is more clear and inclusive. |
Limited difference |
Government subsidies should be measured and
recognized at the fair value of assets received against a commitment by the enterprise
to implement the specific government policies/programs agreed upon. The
accounting treatment is determined based on the sources of subsidies and
nature of the related events, as follows : - Government subsidies (com-pensations
or contributions) made against (or as a result of) the effect of the
continuing main operations of an enterprise by specific government
policies/programs, should be measured as increases of assets or decreases of
liabilities or both and be recognized, on meeting the conditions provided in
(3.1.6) below, as revenues in due period. - Government subsidies (com-pensations or contributions), made against or as a result of the effect of casual or minor operations of the enterprise and/or other events by specific government policies/ programs should be measured based on the increase in the owner's equity (net assets) for the period and be recognized as gains, on meeting the conditions provided in (3.1.6) below, in due period. - Government
Subsidies in the form of immediate financial support in extraordinary
circumstances or as compensation for expenses and losses incurred by the
enterprise in prior periods (extraordinary circumstan-ces)
should be measured at the fair value of assets donated and be recognized, on
meeting the conditions provided in (3.1.6) below, as "extraordinary
gains when received. - If the granting government decided to refund, partially or wholly, the grant paid, then the refunded grand should be measured as a decrease in the owner's equity (net assets) and be recognized as reduction in revenue, or a loss, as the nature of the underlying event may be. - Government subsidies received as advances to be used for more than one financial period should be measured at the fair value of asset donated and recognized as deferred revenue when received. The amount received shall be distributed over benefited accounting periods and in a way that facilitate its comparability with related expenses, according to the nature of the underlying event. - The following conditions should be collectively met upon the recognition of government subsidies. a) Assets given as a subsidy can be obtained through a reasonable degree of trust. b) The enterprise can implement government policies or programs through a reasonable degree of trust. c) Fair value of the subsidy can be determined in a reliable degree of accuracy. d) Expenditures, expenses and losses related to the subsidy can be documented. |
As the text of the Saudi standard is more cleaver and inclusive than that of the international standard , it is suggested to be used as basis for the formulation of the proposed text. |
Analytical Comparative Study
Main topic : Measurement and recognition
of
government subsidies
Sub- topic : Measurement and recognition
of
government grants on receiving assets
The
title of standard : Standard government grants and subsidies
|
Standards
approved in |
Standards approved
in some of GCC Countries (International standards) |
Comparison |
Conclusion |
Proposed
statements |
Reasons |
|
Government grants should be recognized at the fair value of assets received against the enterprise's compliance to implement the policies, programs, and conditions attaching to it. The accounting treatment will be determined in the light of the nature of the underlying events, as follows : - Gratuitous government grants received by the enterprise from a governmental agency with no sacrifice of assets or requirement to settle liabilities or imposition of restrictions, shall be measured at the fair value of the contributed assets and recognized, when the conditions provided in (3.2.1.4) below are met, as gratuitous governmental grants in the owner's equity. - Conditional government grants shall be measured when the conditions provided in (3.2.1.4) below are met, at the fair value of assets contributed and recognized in liabilities as conditional governments grants. - Restricted government grants should be measured when the conditions provided in (3.2.1.4) below are met at the fair value of assets contributed and recognized as restricted government grants in the owner's equity. - The following conditions shall be collectively met upon the recognition of the government grants. a) The receipt of the contributed assets is reasonably certain. b) The enterprise should comply to satisfactorily implement the government policy or program. c) The fair value can be determined with a reliable accuracy. d) The enterprise should meet its obligation satisfactorily |
Government grants and assistances are recognized if there is a reasonable assurance that : - The enterprise will comply with the conditions attaching to them. - The grants will be received. - Fair value can be identified for the grant or assistance. - Government grants may be recognized according the capital approach under which a grant is credited directly to shareholders' interests. - A government grant may take the form of a transfer of a non-monetary asset, such as land or other resources, for the use of the enterprise. In these circumstances it is usual to assess the fair value of the non-monetary asset and to account for both grant and asset at that fair value. An alternative course that is sometimes followed is to record both asset and grant at a nominal amount. - Grants related to depreciable assets are usually recognized as income over the periods and in the proportions in which depreciation on those assets is charged.
|
The two standards agree with respect to the general frame-work for recognition of government grants. Saudi standard is more detailed with respect to identifying the method for recognition of the various forms of government grants. The formulation of Saudi standard is more specific, as it set up the general rules for recognition of government grants and can be applied in the various cases. The treatment adopted by Saudi standard is more appropriate for application circumstances. |
Limited difference |
Government grants should be recognized at the fair value of assets received against the enterprise's compliance to implement the policies, programs, and conditions attaching to it. The accounting treatment will be determined in the light of the nature of the underlying events, as follows : - Gratuitous government grants received by the enterprise from a governmental agency with no sacrifice of assets or requirement to settle liabilities or imposition of restrictions, shall be measured at the fair value of the contributed assets and recognized, when the conditions provided in (3.2.1.4) below are met, as gratuitous governmental grants in the owner's equity. - Conditional government grants shall be measured when the conditions provided in (3.2.1.4) below are met, at the fair value of assets contributed and recognized in liabilities as conditional governments grants. - Restricted government grants should be measured when the conditions provided in (3.2.1.4) below are met at the fair value of assets contributed and recognized as restricted government grants in the owner's equity. - The following conditions shall be collectively met upon the recognition of the government grants. a) The receipt of the contributed assets is reasonably certain. b) The enterprise should comply to satisfactorily implement the government policy or program. c) The fair value can be determined with a reliable accuracy. d) Expenditure, expenses and losses related to the grant can be documented. |
No significant difference between the two standards with respect to recognition of government grants, however Saudi standard formulation is more appropriate for the following : 1. It sets up general rules for governm-ent grants recognition suitable for application in the various transactions arising with respect to these grants. 2.The paragraph is clear and can be easily understood and applied. |
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Analytical Comparative Study
Main topic : Measurement and recognition
of
government grants
Sub- topic : Measurement and recognition of
government
grants after receiving assets
The title of standard : The standard on accounting for government grants and subsidies
|
Standards
approved in |
Standards
approved in some of GCC Countries (International standards) |
Comparison |
Conclusion |
Proposed
statements |
Reasons |
|
- A conditional government grants should be measured at historical amount of donated assets if conditions attached to it have not been fulfilled, and should continually be recognized as liabilities. If the conditions attached to it have been fulfilled, it should be measured based on the historical value of assets donated on the date of fulfillment of conditions. It shall be recognized as graduations grants. - A restricted government grants should be measured at historical value of assets donated and be reclassified as gratuitous government grants on the expiration of the restriction. - If the enterprise did not comply with restriction upon which the asset is donated, restricted government grants should be recognized at net book value as liabilities on realization of noncompliance. - Government grants and assets relating to it should be reclassified, if necessary, under the stipulations of the contribution and should be measured at net book value of assets contributed at the date of reclassification. - Refundable government grants and attaching assets should be measured at net book value of refunded donated assets and be recognized as liabilities at the date of occurance. Differences, if any, between the amounts specified by the government and the carrying value, should be recognized as gains or losses when occurred. - Costs arising from non-compliance within the conditions or restrictions from execution of the government policy/program should be recognized as losses when incurred. |
- Grants related to non-depreciable assets may also require the fulfillment of certain obligations and would then be recognized as income over the periods which bear the cost of meeting the obligations. - Repayment of a grant related to an asset should be recorded by increasing the carrying amount of the asset or reducing the deferred income balance by the amount repayable. |
Saudi standard text identifies clearly basis of measurement of government grants after receiving the assets. This text differentiate, more specifically, conditional government grants, restricted government grants and refundable government grants, which is not the case with respect to the other standard used in some of GCC Countries. Also the Saudi standard specifid the basis of reclassification of government grants, when necessary. The standard adopted by some of GCC Countries, did not address the basis of classification or costs resulting from non-compliance with the conditions or restrictions attached to government grants. |
Significant difference |
- A conditional government grants should be measured at historical amount of donated assets if conditions attached to it have not been fulfilled, and should continually be recognized as liabilities. If the conditions attached to it have been fulfilled, it should be reclassified as gratuitous grants based on the historical value of assets donated. - A restricted government grants should be measured at historical value of assets donated and be reclassified as gratuitous government grants on the expiration of the restriction. - If the enterprise did not comply with restriction upon which the asset is donated, restricted government grants should be recognized at net book value as liabilities on realization of noncompliance. - Government grants and any assets and/or rights relating to it should be reclassified, if necessary, under the stipulations of the contribution and should be measured at net book value of assets contributed at the date of reclassification. - Refundable government grants and attaching assets should be measured at net book value of refunded donated assets and be recognized as liabilities at the date of occurance. Differences, if any, between the amounts specified by the government and the carrying value, should be recognized as gains or losses when occurred. - Costs arising from non-compliance within the conditions or restrictions from execution of the government policy/program should be recognized as losses when incurred. |
Text of Saudi standard is more specific, clearer and inclusive than that of the standard adopted by some of GCC Countries. Therefore it is suggested to be used as basis for the proposed text. |
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Analytical Comparative Study
Main topic : Presentation
Sub-
topic : Presentation of government subsidies
The title of standard : The standard on accounting for government grants
and subsidies
Standards approved in
|
Standards approved in some of GCC Countries
(International standards)
|
Comparison
|
Conclusion
|
Proposed statements
|
Reasons
|
|
- Government subsidies should be included in the statement of income as a
separate component under income or gains or extraordinary gains, depending on
the nature of the underlying event. |
- Government subsidies should be included in the statement of income as a
separate component under income or gains or extraordinary gains, depending on
the nature of the underlying event. |
||||
|
- Government subsidies receiv-ed as advances to
be used for more than one period should be included in the balance sheets as
a separate component under deferred revenues |
- Government subsidies received as advances to be used for more than one
period should be included in the balance sheets as a separate component under
deferred revenues |
||||
|
- Accrued government subsidies should be included as separate component in the balance sheet and classified according to its nature. |
- Accrued government subsidies should be included as separate component in the balance sheet and classified according to its nature. |
||||
|
- Cash flows generating from the collection of subsidies pertaining to the
operating transactions should be classified in the cash flow statement under
cash flows from operating activities. |
- Cash flows generating from the collection of subsidies pertaining to the operating
transactions should be classified in the cash flow statement under cash flows
from operating activities. |
||||
|
- Cash flows generated from the collection of government subsidies against dividends should be classified in the statement of cash flows under cash flows from financing activities. |
- Cash flows generated from the collection of government subsidies against dividends should be classified in the statement of cash flows under cash flows from financing activities. |
Analytical Comparative Study
Main
topic : Presentation of government
Grants and subsidies
Sub-
topic : Presentation of government grants
The
title of standard : The standard on accounting for government grants and
subsidies
Standards approved in
|
Standards approved in some of GCC Countries
(International standards)
|
Comparison
|
Conclusion
|
Proposed statements
|
Reasons
|
|
- Assets contributed should be included in the
balance sheet each as a separate item under "gratuitous contributed
assets" or "conditional contributed assets" or restricted
contributed assets" depending on its contribution stipulations.
Accumulated depreciation shall be deducted from the cost of related assets. |
- Assets contributed should be included in the balance sheet each as a
separate item under "gratuitous contributed assets" or
"conditional contributed assets" or restricted contributed
assets" depending on its contribution stipulations. Accumulated depreciation
shall be deducted from the cost of related assets. |
||||
|
- Gratuitous government grants and restricted government grants should be included in the balance sheet each as a separate component under "owners' equity". |
- Gratuitous government grants and restricted government grants should be included in the balance sheet each as a separate component under "owners' equity". |
||||
|
- Conditional government grants should be included in the balance sheet as a separate component under " Liabilities" and after meeting the conditions be shown under owners' equity as gratuitous government grants. |
- Conditional government grants should be included in the balance sheet as a separate component under " Liabilities" and after meeting the conditions be shown under owners' equity as gratuitous government grants. |
||||
|
- Depreciation expense of contributed assets and costs resulting from non-compliance should be shown in the statement of income each as separate item according the nature of the underling event. |
- Depreciation expense of contributed assets and costs resulting from non-compliance should be shown in the statement of income each as separate item according the nature of the underling event. |
||||
|
- Cash flows from government grants should be shown in the statement of cash flows within cash flows from investing activities. |
- Cash flows from government grants should be shown in the statement of cash flows within cash flows from investing activities, and cash flows from investment of government grant should be shown in the cash flows statement within cash flows from operating activities. |
Analytical Comparative Study
Main topic : Disclosure of government grants and subsidies
Sub- topic :
The title of standard : Standard government grants and
subsidies
Standards approved in
|
Standards approved in some of GCC Countries
(International standards)
|
Comparison
|
Conclusion
|
Proposed statements
|
Reasons
|
|
The financial statements should disclose the following : |
The financial statements should disclose the following : |
||||
|
- The accounting treatment adopted for the government grants and subsidies including methods of presentation of the financial statements. |
- The accounting treatment adopted for the government grants and subsidies including methods of presentation of the financial statements. |
||||
|
- The nature, extent and number of the government grants and subsidies and other forms of government assistance from which the enterprise has directly benefited/will benefit, which has material effect on the results of the entity's activities during the period for coming periods. |
- The nature, extent and number of the government grants and subsidies and other forms of government assistance from which the enterprise has directly benefited/will benefit, which has material effect on the results of the entity's activities during the period for coming periods. |
||||
|
- Unfulfilled conditions and other contingencies attaching to the government grants that has been recognized. |
- Unfulfilled conditions and other contingencies attaching to the government grants that has been recognized. |
||||
|
- The movement in government grants and subsidies and the components of amounts received from the government agency during the period. |
- The movement in government grants and subsidies and the components of amounts received from the government agency during the period. |
||||
|
- The components of the government grants and subsidies balance at the end of the financial period. |
- The components of the government grants and subsidies balance at the end of the financial period. |
||||
|
- Conditions which led to a change in the classification of the government grants and assets attached to it, if any. |
- Conditions which led to a change in the classification of the government grants and assets attached to it, if any. |
Practical Cases and Examples
for Application of
The Standard on Accounting for Government
Grants
and Subsidies
First
Case :
A hospital received a land plot from the ministry of health as a grant of a value estimated by 2,000,000 monetary unit, to be used for building a hospital in one the quarters of the capital city. Land ownership has been transferred to the hospital. However, for reason out of the hospital control, the project was cancelled and the grant was refunded to the ministry.
In this case the grant agreement contract should be studied. If there is no condition abiding the hospital to built the land an no restriction with respect to the hospital control on the land, equity ownership should be increased by the amount of donated land, and this amount shall be included within the item of gratuitous government grants (lands) since the land is of economic value and shall provide investment benefit during coming periods and the enterprise, therefore, has the right to possess it without any reservation. If the hospital is not certain of the economic value of land, then the amount of donated land shall be included within the notes attached to the financial statements without accounting treatment.
If the grant agreement contract includes a building condition before the land becomes an acquired ownership right to the hospital, then the lands shall be recognized as conditional government grants (liabilities), until meeting the condition, then the lands become an enquired ownership right and be included within the gratuitous government grants since the land has an economic value and the hospital will obtain a benefit from it during coming periods if the condition is met.
If the grant agreement contract dos not include a building condition before the ownership is transferred to the hospital , but includes a restriction on the right of land use, confining it in building right only without obliging the hospital to built the land within specific period or otherwise the land will be recovered, and without obliging the hospital to built it according to specific conditions and specifications, the donated land should be recognized within restricted government grants.
In this case, the donated land is supposed to be recognized within restricted government grants because it is donated to the hospital and its ownership is transferred for the purpose of building new hospital in one of the quarters of the capital city. Therefore a restriction exists requiring the management to use the land in a specific purpose. As the hospital did not comply with the restriction, the government is entitled to recover the land plot, which had been delivered to the government without any losses on the hospital for non-compliance with the restriction. Therefore it should be accounted for as follow :
On
receiving the grant :
|
Restricted donated land |
2,000,000 |
|
|
Restricted government grants (land) |
|
2,000,000 |
On
recovering the grant :
|
Restricted government grants (land) |
2,000,000 |
|
|
Recovered government grants |
|
2,000,000 |
|
Recovered government grants |
2,000,000 |
|
|
Restricted donated land |
|
2,000,000 |
Second Case :
An agricultural company obtained machinery of a value estimated by 5,000,000 monetary units, as a grant from the agricultural bank (the bank has the right to recover the machinery or an amount in cash equivalent to its value) against an obligation of the company to reclaim a land of 1,000,000 monetary unit value donated by the ministry of agriculture and its ownership has been transferred to the company. The machinery are depreciated according to the straight – line method. The useful life is 20 years from one year after receiving of machinery by the company. Reclamation costs reach 8,000,000 monetary units.
In this case donated machinery should be recognized as conditional government grants because there is a condition that should be met before transferred machinery becomes a capital grant (government gratuitous grants). This condition is the obligation to reclaim the land donated by the government. Donated lands, the ownership of which is transferred, should be recognized as restricted government grants because the purpose for donation is to use it as agricultural land, which will enhance company activity in the agricultural field.
As the company has already reclaimed the land and the reclamation costs (estimated) reached a material amount , therefore those capital costs should be recognized in a separate item because its nature is different from that of donated lands and so as to be amortized according to generally accepted accounting bases. Therefore it should be accounted for as follow :
1. Recording of
receiving conditional machinery grant and restricted land grant :
|
Donated machinery |
5,000,000 |
|
|
|
Restricted donated land |
1,000,000 |
|
|
|
Conditional government grants (machinery) |
5,000,000 |
|
|
Restricted government grants (land) |
1,000,000 |
|
2. Recording reclamation
expenses of donated lands :
|
Reclamation costs of donated land |
8,000,000 |
|
|
Cash and other elements |
|
8,000,000 |
3. Recording annual
depreciation for donated machinery :
|
Depreciation expense of donated machinery |
250,000 |
|
|
Accumulated depreciation of donated machinery |
|
250,000 |
4. Recording fulfillment
of conditions and recognition of grant additional capital :
|
Conditional government grants (machinery) |
5,000,000 |
|
|
|
Gratuitous government grants (machinery) |
|
5,000,000 |
|
5. Recording amortization of reclamation expenses of donated land :
|
Reclamation expenses of donated land |
400,000 |
|
|
Reclamation costs of donated land |
|
400,000 |
Annual income statement
:
|
* Reclamation expense of donated land |
(400,000) |
|
|
* Depreciation expenses of donated machinery |
(250,000) |
|
Third Case :
The ministry of industry donated a company a plot of land of value estimated by one million monetary unit provided to construct a factory on that land. If the company received , at the beginning of second year, the buildings of the factory, the value of the buildings amounted to 5,000,000 monetary units, its useful life is 20 years and the company follows the straight –line method in depreciation.
In this case the land shall be recognized as conditional government grants (lands/liabilities) because the grant agreement included a condition requiring occurance of an event before transferred assists become an acquired right of the company. This condition is the building of factory on the land. On meeting the condition the government grant becomes a gratuitous grant that increase the investment capability of the company.
Therefore
it should treated as follow :
First Year : Recording
the obtain of conditional government grant (land) :
|
Conditional donated land |
1,000,000 |
|
|
Conditional government grants (land) |
|
1,000,000 |
Second Year :
Recording of building foundation :
|
Buildings |
5,000,000 |
|
|
Cash and other elements |
|
5,000,000 |
Depreciation
of buildings :
|
Expense of building depreciation |
250,000 |
|
|
Accumulated buildings depreciation |
|
250,000 |
Recording
grant as donated capital :
|
Conditional government grants (land) |
1,000,000 |
|
|
Gratuitous government grants (land) |
|
1,000,000 |
Reclassification
of conditional donated land to donated land :
|
Donated land (gratuitous) |
1,000,000 |
|
|
Conditional donated land |
|
1,000,000 |
|
|
First year |
Second year |
|
Statement of Income |
|
|
|
Profits (estimated) |
600,000 |
600,000 |
|
Expense of buildings depreciation |
0000000 |
250,000) |
|
Net profits |
600,000 |
350,00 |
4. Balance sheet statement :
|
Assets : |
|
|
|
Donated land |
1,000,000 |
1,000,000 |
|
Buildings |
----------- |
5,000,000 |
|
Accumulated depreciation |
---------- |
(250,000) |
|
Book value for buildings |
|
4,750,000 |
Liabilities :
|
Conditional government grants (land) |
1,000,000 |
|
Shareholders equity :
|
Gratuitous government grants (land) |
----- |
1,000,000 |
The fourth Case :
On
In this case, the enterprise is granted a car as a price for the best carrier. It is an unconditional, unrestricted and gratis grant. Therefore this grant shall be recognized as a component of ownership equity as the total amount of equity is increased by the amount of the grant as a gratuitous government grant. The cash subsidy was donated for the purpose of covering operating losses generally. The main origin of operating losses is not identified, whether it is the continuing main activity, subsidiary activity, casual activity or due to events and circumstances related to previous activity. Therefore the subsidy is assumed to be for supporting the enterprise activity in general , so the subsidy is added to donated amount against due payable. It shall be accounted for as follow :
1. Journal entries:
Acquirement of a car as a prize for best
carrier
|
Donated Cars |
120,000 |
|
|
Gratuitous government grants |
|
120,000 |
Cash
subsidy to cover 80% operating account and shareholder's share in dividends
(800,000+350,000)
|
Cash account |
1,250,000 |
|
|
Profits and losses (government grant) |
|
1,150,000 |
2. Income statement :
|
Operations results from continuous operations |
(1,000,000) |
|
|
Government subsidy |
1,150,000 |
|
|
Net income |
150,000 |
|
Balance sheet
statement :
Fixed assets :
|
Donated car |
120,000 |
|
Shareholders' equity :
|
Gratuitous government grants (cars) |
120,000 |
|
3. Cash flow statement :
* Flows from operational activities :
Cash inflows :
|
Government subsidy |
800,000 |
* Flows from financing activities :
Cash inflows :
|
Government subsidy |
350,000 |
Fifth Case :
A company purchased machinery by an amount of 1,200,000 monetary units, of four years useful life. The ministry of industry contributed by an amount of 200,000 monetary units against purchasing the machinery from specific source.
The annual net income before depreciation for the four years was 2,000,000 monetary units.
For this example, the amount contributed by the ministry of industry, which is 200,000 monetary units, shall be recognized at the beginning as restricted government grants (machinery) because it will be used in the purpose for which it is expensed, i.e it will be used in supporting the purchase of machinery from the specific source and that (if fulfilled) will not result in occurance of an even according to which the enterprise may bear any other costs. After purchasing the machinery from the source identified by the ministry (that will be the expiry date of the restriction), the grant will be reclassified from restricted government grants to gratuitous government grants within shareholders' equity. It shall be accounted for as follow :
Journal
entries for the first year :
Recording the obtain of a grant for purchasing machinery :
|
Cash account |
200,000 |
|
|
Restricted government grants (machinery) |
|
200,00 |
|
Recording purchase of machinery |
1,200,000 |
|
|
Cash account |
|
1,200,000 |
Recording
reclassification of restricted government capital grants on restriction expiry
date.
|
Restricted government grants (machinery) |
200,000 |
|
|
Gratuitous government grants (machinery) |
|
200,000 |
Recording depreciation
of machinery :
|
Depreciation expense , machinery |
300,000 |
|
|
Accumulated depreciation / machinery |
|
300,000 |
Income statement :
|
|
1st year |
2nd year |
3rd year |
4th year |
|
Net income before depreciation (given) |
2,000,000 |
2,000,000 |
2,000,000 |
2,000,000 |
|
Fixed assets accumulated depreciation (machinery) |
(300,000) |
(300,000) |
(300,000) |
(300,000) |
|
Net income |
1,700,000 |
1,700,000 |
1,700,000 |
1,700,000 |
3. Balance sheet statement :
|
|
1st year |
2nd year |
3rd year |
4th year |
|
Machinery |
1,200,000 |
1,200,000 |
1,200,000 |
1,200,000 |
|
Accumulated depreciation |
300,000) |
300,000) |
300,000) |
300,000 |
|
Book value |
900,000 |
900,000 |
900,000 |
900,000 |
Shareholders'
equity :
|
Gratuitous government grants (machinery) |
200,000 |
200,000 |
200,000 |
200,000 |
Cash flow statement :
Flows from investment activities :
Cash inflows :
Gratuitous government grants (machinery) 200,000
Sixth Case :
The government granted the enterprise (A) an amount of 100,000 monetary units to secure beneficiaries services against an obligation by enterprise (A) to settle an annual payment of 5,000 monetary units to the beneficiaries as far as those beneficiaries remain joining the enterprise. The enterprise has the right to utilize the remaining amount as it wishes. The continuity period of beneficiaries is estimated by 15 years.
In this case, the government subsidy of 100,000 monetary unites, consists of a part (75,000 monetary units) representing an amount of 5,000 monetary unit, which is an annual payment that the enterprise is obliged to pay to beneficiaries for 15 years as a revenue from main activity. The remaining amount (25,000 monetary units) will utilized by the enterprise as it wishes and be considered as casual gains. It shall be accounld for as follow :
1. Recording the receive of subsidy :
|
Cash account |
100,000 |
|
|
Government subsidies (deferred revenue) |
|
100,000 |
2. On reconciliation at the end of year :
|
Government subsidies (deferred revenue) |
5,000 |
|
|
Revenue |
|
5,000 |
3. End of last year :
|
Government subsidies (deferred revenue) |
25,000 |
|
|
Gains an losses (government subsidies) casual activities |
|
25,000 |
The Seventh Case :
An educational entity received from the government a real estate consisting of a land of amount equal to 1,000,000 monetary units and a building constructed on the land of amount equal to 4,000,000 monetary units , as grant from the government, in order to use the building as a training educational center or to be used for any other purpose consistent with the educational and training objectives of the entity.
In this case, the government grants is considered as capital grant, because it is an unconditional grant and the assets may be used for any purpose, and the company has no policy of putting limits or restrictions on the grant of long term assets. It is considered as a gratis grant increasing net assets of the entity without restrictions or conditions stated in advance or other obligations. It shall be accounted for as follow :
|
Donated land (gratuitous) |
1,000,000 |
|
|
Donated buildings |
4,000,000 |
|
|
Gratuitous government grants (land, buildings) |
|
5,000,000 |
The Eighth Case :
An institute decides to construct a building on its own cost. Its total costs amounted to 400,000 monetary unit. The government contributed by the costs of workmanship and machinery. The fair value of the building , excluding land, is estimated by 725,000 monetary units.
In this case, the institute recognizes the services contributed by the government, because the services it received met the following conditions :
· The Services contribute in establishing non-monetary assets.
· The services require special skills.
· Service may be estimated by the more cleaver of the fair value or the value identified by the donating party.
The fair value of service is equal to the difference between the costs beard by the entity (400,000) and the fair value of the asset (725,000) i.e amount of 325,000 monetary units services may be estimated by the amount beard by the government, it is more easy to measure. It shall be accounted for as follow :
|
Buildings |
725,000 |
|
|
Cash and other elements |
|
400,000 |
|
Gratuitous government grants |
|
325,000 |
The Ninth Case :
An enterprise wishes to construct a building costing 10,000,000 monetary units. The enterprise obtained 4,000,000 monetary units as government grant to be allocated for financing the building on the basis of one million monetary units per year. The project construction period is 4 years from beginning of construction to completion. The enterprise obtains the due annual payment of the grant at beginning of each year and invest it by 12% annual rate in a temporary investments.
In this case, the government grant is recognized as a liability until the building construction is completed, then it is recognized as gratuitous government grant within shareholder's equity because the grant is conditioned by the construction of the building. Revenues realized from the temporary investment of the grant, which is one million monetary units yearly at an annual rate of 12% , shall recognized as deduction from the cost of other finance sources available to finance the building. It shall be accounted for as following :
On receiving the grant
in first year :
|
Cash account |
1,000,000 |
|
|
Conditional government grants (building) |
|
1.000.000 |
On receiving investment return realized from the grant at the end of first year :
|
Cash account |
120,000 |
|
|
Temporary investment return from conditional government grants (building) |
|
120,000 |
On taking over the building at the end of four years, assuming that, the total net cost of construction is 10,678,000 monetary units, the accounting treatment will be :
* On taking over the building :
|
Buildings |
10,678,000 |
|
|
Cash and other elements |
|
10,678,000 |
* On recognition of the conditioned government
grant as capital grant :
|
Conditional government grant (buildings) |
4,000,000 |
|
|
Gratuitous government grants (buildings) |
|
4,000,000 |