International Public Sector Accounting Standard (IPSAS) 23: Revenue from Non-exchange Transactions (Taxes and Transfers) is an accounting standard used to account for taxes and transfers. They are applicable to public sector entities [except for Government Business Enterprises (GBEs)]. The standard is also not applicable to private sector entities. IAS 20: Accounting for Government Grants and Disclosure of Government Assistance is the counterparty accounting standard used in private sector (excluding the SMEs) and GBEs with more than 100 employees. Small and Medium Enterprises (SMEs) are required to apply a set of accounting standards known as International Financial Reporting Standards (IFRSs) for SMEs.The purpose of this paper is to explore the main areas of differences between the IPSAS 23 and IAS 20 and suggest some improvements to them.This paper discusses the differences between IPSAS 23 and IAS 20 and suggests areas for improvement in both standards on recognition, presentation, and some disclosures.The methodology used in this paper is the comparative analysis of financial reporting requirements between IPSAS 23 and IAS 20. A desk work research has been conducted to thoroughly compare the two standards and suggest areas for improvement in both standards.The paper is beneficial to professional accountants as it provides the ‘gaps’ existing in the IPSAS 23 and IAS 20 and presenting improvements to plug the ‘gaps’. No similar attempts have been published hitherto in the financial reporting literature.