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December 2022

Ind AS 20 and Typical Government Schemes in India – Part II

By Tejas Chandulal Shah, Chartered Accountant
Reading Time 16 mins
[Part – I of this article published in November, 2022 BCAJ covered various aspects of Ind AS 20. In this concluding part, the author covers how certain typical Government schemes/ programs work, how they fall within the definition of “Government Assistance” and how the same should be recognized and disclosed.]


GOVERNMENT GRANTS/ ASSISTANCE

In India, due to structural issues coupled with the inefficiencies in implementing various programs on their own, the Government has recognized the need to develop multiple underdeveloped or remote locations through private participation. Additionally, to seize the opportunity in global economy/ trade, foreign investments, and earn higher foreign exchange from exports, the Government has thought it apt to promote a few activities. Consequently, governments have launched various benefits/ facilities/ schemes from time to time. These benefits/schemes have proven to be “beneficial” for the Government in terms of meeting their twin objectives, one towards fulfilling their obligation towards the public at large; and second towards achieving the long-term objective of developing remote/ under-developed regions through the creation of employment and ancillary industries with more prominent operating entities establishing their shops.  Such schemes/ benefits have also helped private sector entities get
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