This course is intended to bring about an in-depth understanding of the accounting of government grants and borrowing costs. The course provides information and application in relation to IAS 20 - Accounting for Government Grants and Disclosure of Government Assistance and IAS 23 Borrowing Costs. The main idea of navigating this intellectual territory is to ensure accounting students and qualified professional accountants get to the grips of these salient areas of non-current assets accounting which are usually considered to be high risk and prone to abuse in the real operating business environment. In short, the course demystifies the two accounting standards through a critical examination of relevant core concepts like recognition of and accounting for government grants and capitalization of borrowing costs. Worked examples are shared to enhance the learning experience.

The course also considers disclosure requirements for both accounting standards to ensure both presentation and disclosure requirements are met.

Course Key Concepts: IAS 20, IAS 23, Government grant, Borrowing costs, Capitalization of borrowing costs.

Learning Objectives
  • Explore the objectives and scopes (i.e. focus) of IAS 20 and 23.
  • Discover and define government grants and assistance, borrowing costs and qualifying assets in terms of IAS 20 and 23.
  • Recognize and apply the provisions of IAS 20 in accounting for government grants including the presentation of grants related to assets in an entity‚Äôs financial statements.
  • Recognize the concept of capitalization and circumstances when borrowing costs become eligible for capitalization including the three events or transactions which must take place for capitalization of borrowing costs to be started.
  • Explore and explain the circumstances when capitalization of borrowing costs can be suspended or stopped.
  • Identify and understand the disclosure requirements of the two standards.
Last updated/reviewed: March 27, 2024
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course. However, to benefit more from this course, it is recommended to take Accounting for Non-Current Assets in the Context of both IAS 16 and 40

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Course Objectives2:36
  IAS 204:26
  Government Grants14:28
  Example for Grants and Depreciable Assets7:22
  Grants for Non-Depreciable Assets and Grant Presentation14:20
  When Grants Become Repayable9:16
  Scope of IAS 236:26
  Borrowing costs9:30
  Example for Capitalization of Specific Borrowings21:50
  Suspension of Capitalization4:18
  Demystifying the Accounting of NCA under IAS 20 and 231:34:32
  Slides: Demystifying the Accounting of NCA under IAS 20 and 23PDF
  Demystifying the Accounting of NCA under IAS 20 and 23 Glossary/IndexPDF