Audit risks related to Government Grant

Examples of risks of misstatement are most likely to be related to the following (assuming the amount of the grant to be material): Receipt of a grant does not provide conclusive evidence that conditions attached to it have been or will be fulfilled. There could be a liability to repay. Grants related to income should be recognised in profit or loss on a systematic basis. Grants related to assets may be presented as deferred income or deducted from the carrying amount of the asset. A grant that becomes repayable is accounted for as a change in accounting estimate.