The purpose of the study is to study the state of application of the features of accounting of financial transactions, within the presented requirements in the IAS 20 "Accounting for Government Grants and Disclosure of Government Assistance" based on normative legal acts and scientific-theoretical approaches adopted in Azerbaijan.

The methodology of the research - methods such as synthesis, analysis and comparison were used during the assessment of the reflection of financial transactions in accounting based on the requirements of the standard.

The practical importance of the research - analyzes were carried out on a more reliable and transparent reflection of financial transactions in accounting, in accordance with the application of IAS 20 "Accounting for Government Grants and Disclosure of Government Assistance" in the process of preparing reports from commercial organizations, taking into account the importance of generating financial resources in these organizations.

The results of the research - studies have been conducted in order to achieve high financial indicators calculated for the continuous implementation of activities in commercial organizations, as a result of the application of the IAS 20 "Accounting for Government Grants and Disclosure of Government Assistance", ensuring the increase of the quality characteristics of the financial information reflected in those reports.

The originality and scientific novelty of the research - on the basis of the normative legal acts and scientific-theoretical approaches adopted in Azerbaijan and regarding the disclosure of certain items specified in IAS 20 "Accounting for Government Grants and Disclosure of Government Assistance", comments were given on the features of the reflection of financial transactions in accounting.

Keywords: government subsidies, government assistance, asset-based subsidies, income-based subsidies, donation subsidies, non-monetary government subsidies.