Document ID: chunk:federal_register_of_legislation:F2023C00188:reg:2
Version: federal_register_of_legislation:F2023C00188
Segment Type: reg
Provision Reference: reg 2
Character Range: 4311–5169

2                     If the consideration provided to acquire an asset, including cash, is significantly less than the fair value of that asset, or if no consideration was provided, and the difference is principally to enable the entity to further its objectives, such a transaction is within the scope of this Standard.  For example, an entity that receives a cash grant to be used to further its objectives might not have provided any consideration in exchange for that cash.  As another example, governments are entitled to non-contractual receivables arising from statutory requirements such as taxes and rates without providing consideration to the other party – those receivables provide income to the government to further its objectives.  This Standard addresses the accounting for the income arising from such transactions.

Meeting the objective