(from PWC) On November 19, 2024 the FASB released for public comment a proposed ASU on the recognition, measurement and presentation of government grants that are received by business entities. The proposed ASU leverages the accounting framework in IFRS under IAS 20, Accounting for Government Grants and Disclosure of Government Assistance.
The disclosure requirements apply only to for-profit organizations and would establish guidance on how to recognize, measure and present a government grant received by a business. The proposed update would differentiate a grant related to an asset and a grant related to income.
Stakeholder comments on the proposed ASU are due to the FASB by March 31, 2025. Stay tuned for more information as it evolves.
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