Government grants are assistance in the form of a transfer of resources (e.g. cash, assets, or assistance) in return for past or future compliance with conditions relating to an enterprise’s operating activities.
Government refers to government, government agencies and similar bodies whether local, national or international.
The standard does not deal with:
The calculation of basic EPS is a little bit trickier when new shares have been issued during the financial year.
An investment property should be derecognised, (i.e. removed from the Statement of Financial Position) on disposal, or when the investment property is permanently withdrawn from use and no future economic benefits are expected from its disposal.
Non-current assets are usually measured in the financial statements at cost or a revalued amount, which is depreciated over the asset’s useful economic life.
The basic requirement for IAS 36 – Impairment of Assets, is that assets must be assessed to whether there’s an indication they may be impaired.
The requirements for recognising and measuring an impairment loss are as follows:
IFRS 5 – Non-current assets held for sale and discontinued operations requires entities that have sold, or plan to sell non-current assets to provide certain disclosures in relation to those assets.
The reason these disclosures are required is because by closing down or selling some operations, this will affect the future financial prospects of the entity.
By disclosing relevant information about these discontinued operations, the users of the financial statements can make a more reliable prediction of the future financial performance of the entity.
