The Reflection of the Governmental Subsidies According to IAS 20 in Accountancy

Abstract

The governmental subsidies refer to the assistance given to acompany by the government in exchange of respecting some conditionsregarding the operation activities. They can be: afferent to the assets,incomes or unredeemable loans. The regulation of the subsidies by IAS 20Standard contains the recognition norms of the subsidies, except the casesof: price changes, periods of exemption from the profit tax, value reductionsregarding the accelerated depreciation or the governmental involvement inthe company’s leadership.

Keywords

• governmental assistance
• subsidies
• unredeemable loans
• depreciable assets
• delayed income