Chapter 4: Presentation of grants related to income

IAS 20 offers some flexibility with regards to where grant income is presented in the income statement. Grants related to income (grant income) are sometimes presented as a credit in the income statement, either separately or under a general heading such as ‘other income’. Alternatively, they are deducted in reporting the related expense. The presentation approach should be applied consistently to all similar grants.

Regarding the presentation of grants related to income in the cash flow statement, the cash flow classification is presented in a manner most appropriate to the business.