GRANTS ACCOUNTING: INTRODUCING IFRS IN DOMESTIC PRACTICE

Abstract

The article summarizes the issues of effective organization of the accounting process for obtaining and using grant funds by domestic business entities. The main purpose of the study is to study the domestic practice of accounting for grants and adapt international experience for its comprehensive implementation in the practice of Ukraine. The relevance of the study lies in the fact that the approximation of domestic practice to foreign experience will contribute to the growth of access opportunities for domestic economic entities to the funds of foreign donors. Under the current legislation, contradictions very often arise: foreign donors understand accounting according to IFRS, regulatory authorities require compliance with the tax codex, donors put forward their own requirements for the organization of accounting. The study is carried out in the following logical sequence: analysis of the existing regulatory framework on the topic of study; highlighting the main existing problems and disagreements with international experience; determination of directions for improvement and specification of domestic legislation on the organization of the accounting process of grant activities. The article presents the results of the analysis of domestic and international practices for accounting and recognition of received grant receipts as income. The study confirms the existence of a problem with the difference in approaches to the recognition of received grants in financial statements. This leads to the fact that investors and other external users of such information cannot make correct management decisions. Separately, it should be noted that foreign grantors have specific requirements for the procedure for using the funds provided to them, which requires the grantee to make a non-optimal decision in terms of finance or efficiency in some situations, since it contradicts the established requirements. It is recommended to introduce a grant tracking system on the organization, including with the help of accounting software, using the following parameters: grant source, grant conditions, grant flow (income and expenditure). The results of the study can be useful for scientists and practitioners working towards optimizing the accounting process of grant funds and reflecting grant activity indicators in the financial statements of economic entities.