Description

Government grants are defined in Swiss GAAP FER 28 as compensation provided by a public institution for services provided or expenses incurred in the course of an entity’s operating activities. Through this, the entity receives a specific economic benefit. Swiss GAAP FER 28 distinguishes between government grants related to assets and government grants related to income. Government grants can be of monetary or non-monetary nature. The standard contains accounting rules for government grants in relation to their recognition and valuation, required disclosures, repayment obligations and their presentation in the cash flow statement.