Table of Contents
In April 2001 the International Accounting Standards Board adopted SIC-10 Government
Assistance—No Specific Relation to Operating Activities, which had originally been issued by
the Standing Interpretations Committee of the International Accounting Standards
Committee in July 1998.
SIC Interpretation 10 Government Assistance—No Specific Relation to Operating Activities
(SIC-10) is set out in paragraph 3. SIC-10 is accompanied by a Basis for Conclusions. The
scope and authority of Interpretations are set out in the Preface to IFRS Standards.
FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
• IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
In 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 privatized industries; or
(c) start or continue to run their business in underdeveloped areas.
The 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.
Government 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.
January 1998
This Interpretation becomes effective on 1 August 1998. Changes in accounting policies
shall be accounted for in accordance with IAS 8.