Importance The process of allocating, receiving, and efficiently using the government grants is a complex methodological work, as well as recording these operations in accounts and financial statements of the enterprise. The article addresses the specifics of accounting for government grants by agricultural enterprises, depending on the variety of forms, directions and approved method of the earmarked financing recognition. Objectives The aim of the study is to describe the specificities of recognition of the State aid in accounting records of agricultural enterprises. The objectives include identifying the specifics of government grants accounting depending on the direction of financing; determining the characteristics of accounting for public budget loans; reviewing the accounting procedure for grants related to assets measured at fair value; substantiating the approaches to the accounting treatment of government grants. Methods In the study, we used the dialectical method, comparison, observation, and economic analysis. Results We offer a procedure of recognition at fair value for grants related to biological assets as part of income; clarify the accounting treatment of public budget loans; advance sound arguments in favor of the approach to accounting for government grants from the perspective of income. Conclusions and Relevance We conclude that it is possible to apply certain IFRS-based approaches and methods for recognition of grants, which are the most significant ones for agricultural enterprises.
Keywords: targeted financing, government grants, public budget loan, income approach, capital approach
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