Document ID: chunk:federal_register_of_legislation:F2021C00987:body:0:p2
Version: federal_register_of_legislation:F2021C00987
Segment Type: other
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Character Range: 3016–6119

which identifies the Australian Accounting Interpretations, and AASB 1057 Application of Australian Accounting Standards.  In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.

Comparison with IAS 20
AASB 120 Accounting for Government Grants and Disclosure of Government Assistance as amended incorporates IAS 20 Accounting for Government Grants and Disclosure of Government Assistance as issued and amended by the International Accounting Standards Board (IASB).  Australian‑specific paragraphs (which are not included in IAS 20) are identified with the prefix "Aus".

Tier 1
For-profit entities complying with AASB 120 also comply with IAS 20.

Tier 2
Entities preparing general purpose financial statements under Australian Accounting Standards – Simplified Disclosures (Tier 2) will not be in compliance with IFRS Standards.
AASB 1053 Application of Tiers of Australian Accounting Standards explains the two tiers of reporting requirements.

Accounting Standard AASB 120

The Australian Accounting Standards Board made Accounting Standard AASB 120 Accounting for Government Grants and Disclosure of Government Assistance under section 334 of the Corporations Act 2001 on 7 August 2015.

This compiled version of AASB 120 applies to annual periods beginning on or after 1 July 2021. It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 6 March 2020 (see Compilation Details).

Accounting Standard AASB 120
Accounting for Government Grants and Disclosure of Government Assistance[1]

Scope
1 This Standard shall be applied in accounting for, and in the disclosure of, government grants and in the disclosure of other forms of government assistance.
2 This Standard does not deal with:
(a) the special problems arising in accounting for government grants in financial statements reflecting the effects of changing prices or in supplementary information of a similar nature.
(b) government assistance that is provided for an entity in the form of benefits that are available in determining taxable profit or tax loss, or are determined or limited on the basis of income tax liability. Examples of such benefits are income tax holidays, investment tax credits, accelerated depreciation allowances and reduced income tax rates.
(c) government participation in the ownership of the entity.
(d) government grants covered by AASB 141 Agriculture.

Definitions
3 The following terms are used in this Standard with the meanings specified:
Government refers to government, government agencies and similar bodies whether local, national or international.
Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. Government assistance for the purpose of this Standard does not include benefits provided only indirectly through action affecting general trading conditions, such as the provision of infrastructure in development