ARTICLE | June 21, 2022
Authored by RSM US LLP
The Financial Accounting Standards Board (FASB) has published an Invitation to Comment (ITC), Accounting for Government Grants by Business Entities, to solicit stakeholder feedback on whether incorporating the recognition, measurement and presentation requirements of International Accounting Standard (IAS) 20, Accounting for Government Grants and Disclosure of Accounting Assistance, would improve the accounting for government grants under U.S. generally accepted accounting principles. The responses to this ITC will help inform the FASB as it considers whether to add a project to its technical agenda and commence standard setting in this area.
The ITC is looking for views on, among other matters, the scope and definition of the terms government and government grants, and whether they are understandable and operable in the U.S. financial reporting environment. The ITC also explores experiences of those companies that already analogize the requirements of IAS 20 for accounting for their government grants. Further, the FASB seeks to understand whether the requirements in IAS 20 will improve comparability in accounting for government grants and whether decision-useful information will be provided for investors. The ITC does not seek specific input on related disclosure matters in light of the FASB disclosure guidance related to government assistance issued in November 2021.
The ITC is open for comment through September 12, 2022.
This article was written by RSM US LLP and originally appeared on 2022-06-21.
2022 RSM US LLP. All rights reserved.
https://rsmus.com/insights/financial-reporting/fasb-itc-accounting-for-government-grants-by-business-entities.html
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Firley, Moran, Freer & Eassa is a proud member of RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.
For more information on how the Firley, Moran, Freer & Eassa can assist you, please call us at (315) 472-7045.