Grants are recognised in profit or loss on a systematic basis, matched with the costs they compensate, once there is reasonable assurance that the conditions will be met and the grant received. Grants related to assets may be presented as deferred income or deducted from the asset's carrying amount.
Source: TMS 20
Related terms
Investment incentive certificateA certificate issued by the Ministry of Industry and Technology for investments under state aid schemes, providing support such as tax reductions and VAT exemptions.R&D deductionAn additional deduction for research and development expenditure in determining corporate income, subject to conditions set out in law.Property, plant and equipmentPhysical assets used in the production of goods and services, for rental or for administrative purposes, and expected to be used for more than one period.Accounting estimatesThe determination by management judgement of amounts that cannot be measured precisely, such as provisions, useful lives, expected credit losses and fair values.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Accrual basis of accountingThe principle of recording transactions as income, expenses, assets and liabilities in the period in which they occur, rather than when cash is received or paid.
Last updated: October 31, 2026 · This definition is for general information only.