Accounting for government funds into businesses

Abstract

Government involvement in the business can in some cases be considered a government subsidy. However, the
participation of government capital to be consider as a subsidy in the some conditions attached.
At present, there is no distinction between government subsidies in the form of investment with government
contributions. The inaccurate accounting of the participation of government capital may cause material
misstatement of the financial statements. The author presents a number of theoretical issues in accounting
for government (state) capital contributions to businesses, to show when government capital participation is
considered as a subsidy. It also describes the real situation in Vietnam on this issue and offers some solutions to
accurately and honestly account for government capital participation in enterprises today