Accounting for Government Grants According to IAS 20: The Problems and Directions for Improvement
Journal Title: Oblik i finansi - Year 2024, Vol 1, Issue 1
Abstract
Given the long application period of IAS 20 and several unsuccessful attempts to revise it by the IFRS Council, scientists have identified shortcomings in its application in practice, which prevent the disclosure of representatively reliable and relevant information for users about government grants and other government assistance. The article aims to identify and analyze the problems of applying IAS 20 “Accounting for Government Grants and Disclosure of Government Assistance” in modern conditions and form directions for its improvement. The historical aspects of the development of IAS 20 allow us to understand the reasons for its long-term use without significant changes. The literature review shows that in comparison with Ukrainian researchers, for the vast majority of foreign researchers, IAS 20 is the object of institutional analysis; they consider the introduction of changes to its composition not only from the standpoint of improving the current accounting methodology but as a social-institutional practice that changes the understanding of the state and the results of the company's activities from the perspective of stakeholders. The article describes attempts to develop alternative accounting standards for government grants and other government assistance for enterprises. It presents examples of non-compliance of the individual provisions of IAS 20 with the converged Conceptual Framework for Financial Reporting requirements. Three main areas of development of IAS 20 have been identified based on the goals of government assistance: overcoming the consequences of the COVID-19 pandemic, mitigation and adaptation to climate change, and overcoming the consequences of war. The practicality of understanding the accounting system in terms of government assistance as a social-institutional practice that forms knowledge about ethical behaviour and social justice at enterprises and spreads it among members of society, prompting them to make informed decisions, was proven.
Authors and Affiliations
Serhii Lehenchuk & Nataliya Vyhovska
Keywords
Related Articles
- EP ID EP734693
- DOI 10.33146/2307-9878-2024-1(103)-14-21
- Views 55
- Downloads 2
Accounting and Taxation of Joint Investment Institutions, as One of the Mechanisms of Housing Construction Financing
Crisis phenomena and speculations in housing construction led to strict state regulations to attract financing and investments in this area. In addition, an additional participant (intermediary) was entered into the syst...
Методологічні засади формування інтегрованої звітності у кластері в умовах інституційних перетворень
Формування звітності в умовах інституційних перетворень здійснюється в нерозривному зв’язку з глобальними та інтеграційними процесами, які є характерними для даного періоду розвитку суспільства. Інституційне забезпечення...
Normative Aspects of Regulating the Digital Economy Development
Digitalization of the economy is an objective reality. A typical situation for many countries is that regulatory and legal regulation is inferior to the pace of development of the digital economy. The dynamics of the dig...
Структурно-інституційні перетворення в аграрному секторі економіки України
Метою статті є розкриття структурно-інституційних перетворень в аграрному секторі економіки України в контексті досягнутого рівня прогресу реалізації аграрної реформи, оцінка їх впливу на соціологічні, екологічні та екон...
Transformation of Inventory Accounting in Terms of Harmonization of Public Sector Accounting Systems with International Standards
The article investigates accounting procedures for inventory in public sector institutions. The analysis of the most important aspects of accounting for inventories is being held, which are reflected in Instructions for...