14Accounting for Government grants and disclosure of Government assistance

14 Accounting for Government grants and disclosure of Government assistance

(1) When applying AASB 120 Accounting for Government Grants and Disclosure of Government Assistance in preparation of financial statements, reporting entities that are for‑profit entities must: (a) recognise non‑monetary government grants at fair value and not at nominal amount; (b) present government grants related to assets as deferred income and not as a deduction to the carrying amount of the asset; and (c) present government grants related to income as income in the statement of comprehensive income and not deduct them from the related expense. (2) To the extent that receipts under the Paid Parental Leave Scheme are regarded as income, paragraph (1)(c) does not apply to these receipts.