Ias 20 accounting for government grants and disclosures, Auditing

IAS 20 Accounting for Government Grants and Disclosures

IAS 20 Accounting for government grants and disclosures of government assistance

The auditor needs to verify the grants have been properly recognized as related to income and capital expenditure in the accounting period. In particular, the auditor should ensure that the conditions of the grant are to be met; they may be repayable within specific circumstances. It is also essential to verify such the grants have to be accounted for in accordance along with IAS 20.  As for example which capital grants are acknowledged over the expected needful life of the revenue grants and related asset are matched against about expenditure.

There are two acceptable issues of accounting for capital grants.  Either they can be netted of against the asset the total cost of the asset is then depreciated or else the grant can be treated as deferred income and then located to the income statement on the similar basis as depreciation is charged on the related asset.  Accuracy and re-performance tests should be performed through the auditor. The auditor should make sure about the accounting policy is suitable in accordance along with the standard and properly discussed.

Posted Date: 1/25/2013 2:08:19 AM | Location : United States







Related Discussions:- Ias 20 accounting for government grants and disclosures, Assignment Help, Ask Question on Ias 20 accounting for government grants and disclosures, Get Answer, Expert's Help, Ias 20 accounting for government grants and disclosures Discussions

Write discussion on Ias 20 accounting for government grants and disclosures
Your posts are moderated
Related Questions

Management Representations as a Source of Audit Evidence International Standard on Auditing as abbreviated ISA 580 Management Representations gives guidance and standards on t

Process to Adopt Liabilities It is significant that the auditor realises which such liabilities can exist and he should obtain reasonable steps to unearth them whether they ex

Simple Trust - This type of TRUST is essential to distribute all its income currently, whether or not the TRUSTEE actually does so and it has no provision in trust instrument for c

Disclosure Requirements - Investment In common terms, the following items have to be disclosed in the concern to all investments: (a) The accounting policies about:-

Question 1: Auditing standards regulate the audit profession. a) Explain the importance and role of audit standards. b) Lists four of the standards issued by the INTOSAI

Audit Procedures -Research and Development The auditor should ensure that: a) Any costs incurred in the buy of fixed assets in order to give facilities for development and

Non-Attendance at Stock Takes Whether the auditor is unable to attend a stock take, since he has numerous clients along with the same accounting date, or stock is situate at r

Internal Audit has been asked by the State to review the activities of The Commission on Workforce Development

Advantages and Disadvantages of a Continuous Audit Advantages: The regular or continual attendance of the auditor might act as a deterrent to scam; Weaknesses in the