Study On The Accounting Treatment Problems Of Government Grants

As one of the necessary ways of direct government intervention in economy,the government grants shows the relationship between the government and the companies,and has active effects on the improvement of economy efficiency and the optimization of the market resources.In our country,the China Accounting Standards for Government Grants(CAS16)are now widely used,but there are still some problems remained such as concept definition,initial verification and follow-up measurement.These remaining problems make the accounting methods differs from each companies.So it's necessary to have a deep research on government grants accounting.Based on the theories of International Accounting Standard 20:Accounting for Government Grants and Disclosure of Government Assistance(IAS20),the China Accounting Standards for Government Grants(CAS16)and the CAS16 exposure draft,this paper points out some accounting practical issues including initial verification and follow-up measurement of Government Grants,and comes up with relevant solutions through deep discussion and analyzing.Firstly,this paper compares IAS20 and CAS16,concludes the scholars' research achievements in Government Grants.Secondly,this paper points out remaining accounting practical issues in the following three aspects: the first is about concept definition,which means the companies have difficulty in distinguish Government Grants and capital input;the second is about when to affirm the Government Grants when there are conditions attached to it;the third is about how to choose accounting subject in special Government Grants,how to choose the metering methods,how to amortizing deferred income accurately and so on.Lastly,this paper comes up with suggestions towards the above issues,such as classifying the Government Grants based on its essence and intention?solving initial affirming and follow-up measurement problems with quality demand of accounting information etc.Generally speaking,this paper aims to optimize our country's financial accounting theory system and provide guidance and references for listed companies.