Accounting for government aid and grants according to the International Accounting Standard IAS 20 and its role in enhancing the quality of accounting information - an analytical study in the National Forum for Thought and Culture Research

Abstract

International accounting standards such as IAS 20 are one of the important tools in improving the quality of financial and accounting reports for these units. This standard aims to establish a framework for dealing with governments and their financial support for non-profit units. The standard addresses issues related to providing financial support and appropriate accounting disclosure, in order to achieve maximum transparency and credibility in the financial reports of these units. The study aims to explore the role of International Accounting Standard IAS 20 in improving the quality of accounting information for the purposes of financing non-profit units, as the impact of this standard on financial disclosure and the extent of improving the accuracy and reliability of accounting information provided by non-profit units to governments and other stakeholders will be analyzed and understood. To achieve this goal, a sample of non-profit organizations was selected, represented by the National Forum for Thought and Culture Research, and a sample from 2019, due to the difficulty of obtaining financial data. The study concluded that the National Forum for Thought and Culture Research violated some of the accounting disclosure items related to fixed and current assets and liabilities in accordance with International Standard No. 20 IAS, which is the accounting policy followed for government grants, including the presentation methods followed in the financial statements, the nature and extent of government grants recognized in the financial statements, and reference to other forms of government assistance from which the establishment benefited directly, and the unfulfilled conditions and possibilities related to the government assistance that was recognized. The study recommends the necessity of focusing on the audit bodies by demanding that the relevant parties commit to applying the International Standard No. IAs20 and adopting it in all accounting registration, classification, classification, summary and presentation of results. The qualitative characteristics of accounting information should be viewed comprehensively, i.e. one characteristic should not be preferred over another, as this preference could lead to a negative impact on the accounting information presented. Therefore, these characteristics should be viewed as a single unit and applied to the information in parallel and harmonious lines that complement each other.