SIC-10 IFRS Foundation A1281SIC Interpretation 10Government AssistanceNo Specific Relation to Operating ActivitiesInApril2001theInternationalAccountingStandardsBoardadoptedSIC-10GovernmentAssistanceNo Specific Relation to Operating Activities, which had originally been issued by theStandingInterpretationsCommitteeoftheInternationalAccountingStandardsCommittee in July 1998.IAS1PresentationofFinancialStatements(asrevisedinSeptember2007)mademinorconsequential amendments to SIC-10.SIC-10A1282 IFRS FoundationSICInterpretation10GovernmentAssistanceNoSpecificRelationtoOperatingActivities(SIC-10)issetoutinparagraph3.SIC-10isaccompaniedbyaBasisforConclusions.The scope and authority of Interpretations are set out in paragraphs 2 and 716 of thePreface to International Financial Reporting Standards.FOR THE BASIS FOR CONCLUSIONS ON SIC-10 SEE PART B OF THIS EDITIONSIC-10 IFRS Foundation A1283SIC Interpretation 10Government AssistanceNo Specific Relation to Operating ActivitiesReferences IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors IAS 20 Accounting for Government Grants and Disclosure of Government AssistanceIssue1 Insomecountriesgovernmentassistancetoentitiesmaybeaimedatencouragementorlong-termsupportofbusinessactivitieseitherincertainregionsorindustrysectors.Conditionstoreceivesuchassistancemaynotbespecificallyrelatedtotheoperatingactivitiesoftheentity.Examplesofsuchassistance are transfers of resources by governments to entities which: (a) operate in a particular industry;(b) continue operating in recently privatised industries; or(c) start or continue to run their business in underdeveloped areas.2 The issue is whether such government assistance is a government grant withinthescopeofIAS20and,therefore,shouldbeaccountedforinaccordancewiththis Standard.Consensus3 Government assistance to entities meets the definition of government grants inIAS20,eveniftherearenoconditionsspecificallyrelatingtotheoperatingactivities of the entity other than the requirement to operate in certain regions orindustrysectors.Suchgrantsshallthereforenotbecrediteddirectlytoshareholders interests.Date of consensusJanuary 1998Effective dateThis Interpretation becomes effective on 1 August 1998.Changes in accounting policiesshall be accounted for in accordance with IAS 8.