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

Abstract

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