Accounting for government grants to TAS 20 and application on a model company

In conjunction with the attaining of International trade, money and capital movements to significant amounts, a study that will internationally be accepted is commenced to achieve the transparency by reducing the difference between countries in usage of financial knowledge and International Financial Reporting Standard is created. Turkish Accounting Standards Committee which had been founded to compose and publish the accounting standards for terminating the variation in accounting and financial reporting implementation established the Turkish Accounting/Financial Reporting Standards based on IFRS. Within the scope of TFRS, there are numerous standards in various areas which had been established in accordance with Turkish economy, management structure and management requirements. Government grants which provide various benefits to individual investors and enterprises, increases level of public welfare and effective in investment, production and therefore growth. The accounting and reporting of government grants is explained in ?TAS 20 Accounting Government Grants and Disclosures of Government Assistance?. In thesis, ?Accounting for Government Grants According to TAS 20 and Application on a Model Company? which had been composed with the idea that the implementation oriented studies may make the transition period smoother to various enterprises, the government grants which have wide area of implementation had been limited to investment grants, export grants, R&D grants and taxational grants. They are explained within this limit. Classification of government grants and accounting methods of government grants had been investigated and implementation areas in model company had been examined. In this context, through the study on model company it is evident that the savings earned through the utilization of government grants are considerably high. According to the standard, government grant savings, which may be accounted in profit, deficit or accounted by associating with financial reports may also bring innovation to government grants accounting processes of model company. For that purpose, all the savings acquired through government grants shall be calculated and reflected to records.