IAS 20 Government grants

Hi,

I’m a bit confused around recognition of government grants in terms of what it actually means. Say an entity receives a grant in the a bank but has not met the conditions of the grant then i would have thought the treatment would be debit bank credit deffered income. Then when the condition/s are met then the grant can be recognised in the p and l over systematic basis. So the movement of the grant from deferred income to the p and l is what i understand as ‘recognising’ the grant to be rather than the debit bank credit deferred income.

I got a bit confused as the standard says:
A government grant is recognised only when there is reasonable assurance that (a) the entity will comply with any conditions attached to the grant and (b) the grant will be received

so this would imply its possible to ‘recognise’ a grant without actually receiving it.

My question is, when the standard says ‘a government grant is recognised’ does it mean applied to p and l rather than debited to bank and deferred income. Also, if you know you will receive the grant in the future and met the conditions now then would the entries be to receivable and deferred income and then recognise the grant from deferred income to the p and l even though you have not actually received the grant?

Thanks for your help with this, apologies if its a bit long winded