The Covid-19 global pandemic has created additional burden on businesses all over the world. In most jurisdictions, government has been implementing measures in helping businesses with their cash flows.
In Singapore, the government has also stepped in to help with various budgets to help businesses and economies over the past few months in response to the Covid-19 global pandemic. Some of the measures implemented include:
• Property Tax Rebate
• Jobs Support Scheme
• Rental Relief Framework
Entities will need to assess if the government assistance provided meets the requirement of the government grants stipulated in FRS 20 Accounting for Government Grants) or other standards (e.g. FRS 116 Leases) to determine the appropriate accounting treatment of the respective assistance provided.
In this article we will be discussing in detail key considerations prior to determining the appropriate accounting treatment for the various schemes that have been provided.
• Is the government assistance in the scope of FRS 20 or another standard?
• What is the correct recognition and measurement?
• Is it recognised in the correct period?
• How should the assistance received from governments be presented in the financial statements?