The paper examines the issue of government grants tax accounting. The paper shows analysis of legal acts regulating the spheres of tax and accounting. The study shows that the accounting of grants affects the financial result before taxation according to accounting. However, according to tax accounting this effect is excluded due to the use of tax differences. The purpose of the paper is to analyze the changes to the tax legislation and determine its main impact on the tax accounting of state aid. The study highlights the main features of the relationship between government grants and income tax administration. The results of the analysis show that all taxpayers (regardless of the level of annual income) will adjust the financial result before taxation for tax differences in correspondence to government grants. The paper analyzes the main categories of income tax payers, which must adjust the financial result before taxation for tax differences in relation to state grants. The paper shows conditions for provisions regarding the specifics of budget grants taxation, in particular, for the purposes of corporate income tax. Also, paper highlights peculiarities using of tax differences in income tax reporting. Finally, the study examines key points of accounting for state grants and their relationship with value added tax. Identified the main cases when grants business operation are the object of value added tax. Moreover, business operation with government grants are not object of value added tax, but there are exceptions for operations with non-monetary grants. Changes to the tax legislation caused differences between tax accounting of government grants and accounting. Now economic entities that receive budget grants must adjust the financial result before taxation using taxation differences in income tax report. In general, transactions with state grants are not subject to value added tax, but there are exceptions for grants in the form of property.

Introduction. This paper establishes that accounting policy is an important step in the organization of accounting. The paper shows that an effective accounting policy allows forming reliable and high-quality indicators in the financial statements. This study examines the main ideas by scholars on problems of IFRS accounting policy. Also, the paper gives a critical assessment their main positions. The purpose of the paper is to analyze the system of accounting standards for formation state aid accounting policy. Results. The study shows that the state aid transactions accounting policy is a complex system of interrelated standards. Firstly, the article examines the impact of international accounting standards on the formation of accounting policies in general. Secondly, research shows that other standards also have a partial impact. Also, disclosing of significant accounting policies allows bettering understanding the methodological basis of financial reporting. Moreover, business entities adhere to the principle of conciseness in the formation of accounting policies. Finally, the article highlights the main elements of the State aid transactions accounting policy in accordance with IAS 20: recognition of state aid; methods of accounting for state grants; types and forms of state aid; recognition of contingent assets and contingent liabilities at the recognition of state aid; methods of presenting information on government grants related to assets and government grants related to income; disclosure of information in the notes to the financial statements. Conclusion. Accounting policy is based on standards and judgments of management, which are proved by significant facts. Therefore, IFRS accounting policies should be viewed as a philosophy of choosing alternatives and accounting methods for business.