The FASB considers borrowing a page from the IFRS playbook when it comes to accounting for government grants by business entities.
In under a minute
- On June 13, 2022, the Financial Accounting Standards Board (FASB) issued an Invitation to Comment (ITC), “Accounting for Government Grants by Business Entities: Potential Incorporation of IAS 20, ‘Accounting for Government Grants and Disclosure of Government Assistance,’ Into Generally Accepted Accounting Principles,” which requests stakeholder feedback on whether the FASB should incorporate certain provisions of International Accounting Standards (IAS) 20 into U.S. generally accepted accounting principles (GAAP).
- The ITC seeks stakeholder feedback on various aspects of IAS 20, including:
- The understandability, operability, and decision-usefulness of certain IAS 20 requirements, including scope and definitions
- Whether any changes to existing IAS 20 requirements should be made
- Current practice issues that arise when applying the provisions of IAS 20
- Stakeholders are asked to provide feedback on the ITC by Sept. 12, 2022, which will help the FASB determine whether to add a project to its technical agenda to address the recognition, measurement, and presentation of government grants by business entities.