State aid and IFRS accounting policy

Анотація

Introduction. This paper establishes that accounting policy is an important step in the organization of accounting. The paper shows that an effective accounting policy allows forming reliable and high-quality indicators in the financial statements. This study examines the main ideas by scholars on problems of IFRS accounting policy. Also, the paper gives a critical assessment their main positions. The purpose of the paper is to analyze the system of accounting standards for formation state aid accounting policy. Results. The study shows that the state aid transactions accounting policy is a complex system of interrelated standards. Firstly, the article examines the impact of international accounting standards on the formation of accounting policies in general. Secondly, research shows that other standards also have a partial impact. Also, disclosing of significant accounting policies allows bettering understanding the methodological basis of financial reporting. Moreover, business entities adhere to the principle of conciseness in the formation of accounting policies. Finally, the article highlights the main elements of the State aid transactions accounting policy in accordance with IAS 20: recognition of state aid; methods of accounting for state grants; types and forms of state aid; recognition of contingent assets and contingent liabilities at the recognition of state aid; methods of presenting information on government grants related to assets and government grants related to income; disclosure of information in the notes to the financial statements. Conclusion. Accounting policy is based on standards and judgments of management, which are proved by significant facts. Therefore, IFRS accounting policies should be viewed as a philosophy of choosing alternatives and accounting methods for business.

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