Government grants are assistance in the form of transfers of resources to an organisation in return for past or future compliance with certain conditions relating to the operating activities of that organisation. They exclude transactions with governments that are not distinct from the usual trading activities of the organisation.
Government grants are provided to an organisation to help finance a specific asset or expenditure. These grants could take various forms and are sometimes referred to by other names such as subsidies, subventions, or premiums. Receiving a government grant may be significant to an organisation for two reasons.
