SIC 10 Government Assistance — No Specific Relation to Operating Activities
Last EU endorsed/ amended on 03.11.2008
•IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
•IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
1In some countries government assistance to entities may be aimed at encouragement or long-term support of business activities either in certain regions or industry sectors. Conditions to receive such assistance may not be specifically related to the operating activities of the entity. Examples of such assistance are transfers of resources by governments to entities which:
(a)operate in a particular industry;
(b)continue operating in recently privatised industries; or
(c)start or continue to run their business in underdeveloped areas.
2The issue is whether such government assistance is a ‘government grant’ within the scope of IAS 20 and, therefore, should be accounted for in accordance with this Standard.
3Government assistance to entities meets the definition of government grants in IAS 20, even if there are no conditions specifically relating to the operating activities of the entity other than the requirement to operate in certain regions or industry sectors. Such grants shall therefore not be credited directly to shareholders' interests.
Date of consensus
This Interpretation becomes effective on 1 August 1998. Changes in accounting policies shall be accounted for in accordance with IAS 8.
Start free ReadyRatios
reporting tool now!
- Debt ratios
- Liquidity ratios
- Profitability ratios
- Asset management ratios
- Cash Flow Indicator Ratios
- Market value ratios
- Financial analysis
- Business Terms
- Financial education
- International Financial Reporting Standards (EU)
- IFRS Interpretations (EU)
- Financial software
Most WantedIFRS Terms
- Statement of Comprehensive Income
- Cost of Sales
- Shareholders Equity
- Finance Costs
- Earnings per Share (EPS)
- Deferred Tax Assets (Deferred Tax Liabilities)
- Intercompany Eliminations
- Capital Expenditure (CAPEX)
- Share Premium
- Distribution Cost
Have 10 minutes to relax?Play our unique
Play The Game