What does FRS 102 say about the guidance on repayment of grants?

FRS 102, applicable in the UK and Ireland for financial reporting, does address the treatment of grants and their repayments. However, it doesn't provide specific guidance on the accounting treatment for repayments of grants. Instead, it focuses more on the initial recognition and measurement of grants received, while the treatment of repayments is left to the general principles of accrual and going concern.

When a grant is repaid, entities may need to consider the nature of the grant and any associated terms when determining how to reflect the repayment in their accounts, but FRS 102 itself does not elaborate on this process in detail. Consequently, the overall lack of explicit guidance from FRS 102 regarding the accounting for these repayments leads to the interpretation that it offers no guidance on accounting for repayments.

This distinction is important for entities that may face the need to repay grants, as they will need to refer to broader accounting principles and possibly related standards to determine the appropriate treatment for such transactions.