SSAP 4 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

SSAP 4 deals with the accounting treatment and disclosure of government grants and other forms of government assistance. The general rule of SSAP 4 is that government grants should be recognised in the profit and loss account so as to match them with the expenditure towards which they are intended to contribute.

• Grants towards the cost of fixed assets should be recognised over the expected useful lives of the related assets.
• Such grants should be treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.
• Grants for immediate financial support or to cover costs already incurred should be recognised immediately in the profit and loss account.
• Grants towards general activities of the entity over a specific period should be recognised in the profit and loss account over that period.
• No grants should be recognised in the profit and loss account until the conditions for their receipt have been complied with.

• Read FRC Summary on SSAP 4

Last updated 21 June 2015