As-12 government grant doubt

Government grants are rarely gratuitous. The enterprise earns them 
through compliance with their conditions and meeting the
envisaged obligations. They should therefore be taken to income
and matched with the associated costs which the grant is intended
to compensate. It is fundamental to the ‘income approach’ that government grants be 
recognised in the profit and loss statement on a systematic and rational basis
over the periods necessary to match them with the related costs. Income
recognition of government grants on a receipts basis is not in accordance
with the accrual accounting assumption