Deloitte comment letter on tentative agenda decision on IAS 20 — Recoverable cash payments

Published on: 19 Jan, 2016

We have commented on the IFRS Interpretations Committee's publication in the November IFRIC Update of the tentative decision not to take onto the Committee's agenda a request for clarification of whether a cash payment made by government to fund a research project that is repayable only if the entity decides to commercialise the project's output should be characterised as a financial liability or a government grant.

We agree with the IFRS Interpretations Committee's decision not to add this item onto its agenda. However, we believe that the statement in the tentative agenda decision that "many members of the Interpretations Committee thought that the arrangement also met the definition of a forgivable loan" implies that some members disagreed. We recommend that the tentative agenda decision include only statements upon which the Committee as a whole can reach consensus.

Download the full comment letter below.


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