Summary 

The purpose of the article is to review the actuality of the government grants and the peculiarities of accounting of legal entity.

The main objectives of the state grant policy are development of SMEs, promoting social, cultural and scientific research activities, promotion of innovations and introduction of the craft, helping to eliminate natural disasters caused by natural and human impacts, implementation of environmental rehabilitation projects. Therefore, issues of recognition and accounting of state grants are also relevant. In addition, it is important to evaluate the effect of grants. The conclusion is made on the necessity of fully implementing the requirements of international standards for grants accounting and monitoring the effectiveness of grants performance.

Accounting of grants regulates bass 20 – Accounting for Government Grants and Disclusure of Government Assistance. The following are used in this standard (IAS 20. gv: ):

Government refers to government, government agencies and similar bodies whether local, national or international.

Government assistance is action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria. Government assistance for the purpose of this Standard does not include benefits provided only indirectly through action affecting general trading conditions, such as the provision of infrastructure in development areas or the imposition of trading constraints on competitors.

Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity. Forgivable loans are loans which the lender undertakes to waive repayment of under certain prescribed  conditions. 

In the work is considered by the revenue-method and capital-method of state grants accounting. The peculiarities of accounting for grants related to cash and non-cash assets are discussed. The benefit of a government loan at a below-market rate of interest is treated as a government grant. The entity  shall consider the conditions and obligations that have been, or must be, met when identifying the costs for which the benefit of the loan is intended to compensate. At that the article describes the share of state grants in the state budget of Georgia and are made conclusions:

• The government should encourage new innovations in Georgia that will facilitate employment and economic growth;
• Enterprises in the financial statements must presentade information about the grant progress and the results of its implementation;
• In the entrepreneurial grant projects, have be the obligation  that 50% of the profit received during the first three years will be reinvestment in the enterprise.