Document ID: chunk:federal_register_of_legislation:F2024L00708:body:0:p116
Version: federal_register_of_legislation:F2024L00708
Segment Type: other
Provision Reference: 
Character Range: 321358–324131

Grants and Disclosure of Government Assistance (August 2015)
Paragraphs 16, 29 and 32 are amended and paragraph 49 is added. New text is underlined and deleted text is struck through.

Government grants
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16 It is fundamental to the income approach that government grants should be recognised in profit or loss on a systematic basis over the periods in which the entity recognises as expenses the related costs for which the grant is intended to compensate. Recognition of government grants in profit or loss on a receipts basis is not in accordance with the accrual accounting assumption (see AASB 108 Basis of Preparation of Financial StatementsAASB 101 Presentation of Financial Statements) and would be acceptable only if no basis existed for allocating a grant to periods other than the one in which it was received.
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Presentation of grants related to income
29 Grants related to income are classified and presented in the statement of profit or loss in accordance with the requirements in AASB 18 Presentation and Disclosure in Financial Statements. presented as part of profit or loss, They are included in profit or loss, either as income or as a deduction separately or under a general heading such as 'Other income'; alternatively, they are deducted in reporting the related expense.
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Repayment of government grants
32 A government grant that becomes repayable shall be accounted for as a change in accounting estimate (see AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors). Repayment of a grant related to income shall be applied first against any unamortised deferred credit recognised in respect of the grant. To the extent that the repayment exceeds any such deferred credit, or when no deferred credit exists, the repayment shall be recognised immediately in profit or loss. Repayment of a grant related to an asset shall be recognised by increasing the carrying amount of the asset or reducing the deferred income balance by the amount repayable. The cumulative additional depreciation that would have been recognised in profit or loss to date in the absence of the grant shall be recognised immediately in profit or loss.
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Effective date
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49 AASB 18 issued in June 2024 amended paragraphs 16, 29 and 32. An entity shall apply those amendments when it applies AASB 18.

AASB 121 The Effects of Changes in Foreign Exchange Rates (August 2015)
Paragraph 48 is amended and paragraph 60N is added. New text is underlined and deleted text is struck through.

Use of a presentation currency other than the functional currency
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Disposal or partial disposal of a foreign operation
48 On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation,