MPSAS 23: Revenue from Non-Exchange Transactions (Taxes and Transfers)

Originally published at: MPSAS 23: Revenue from Non-Exchange Transactions | TheAccSense

MPSAS 23 Revenue From Non-Exchange Transaction (Taxes and Transfers) is another interesting accounting standard for the public sector entities. Similar to MPSAS 21: Impairment for Non-Cash Generating Assets, this accounting standard is not available for entities in the private sector. It is common for public sector entities to receive resources without giving back in return…

How does this differ from the grant accounting in private sector under MFRS?

Under MFRS 120, government grant will be recognised only when there is a reasonable assurance that the entity will comply with the conditions attached to it and the grant will be received. Furthermore, MFRS 120 introduces two approaches for recognising the grant - either capital approach (grant recognise outside profit or loss) or income approach (recognised in profit or loss).

We will cover this in our upcoming Factsheet Article on MFRS 120