I got a question over night from South Africa on how to apply IAS 20: Government Grants. A company's auditors want to reverse an entry from last year in which they initially credited a Government Grant to the Equity Account ... could they, should they, reverse that entry? My advice is that according to IAS 20 they have NO CHOICE but to reverse that entry. Government Grants, all Grants, MUST be shown as income and NEVER as capital. DW