Defining Issues | June 2022

Insight

FASB seeks feedback on potential incorporation of IAS 20

The FASB has issued an Invitation to Comment on its potential incorporation of IAS 20 into US GAAP.

Michael Kraehnke

Michael Kraehnke

Partner, Dept. of Professional Practice, KPMG US

+1 303-382-7172

Meredith Canady

Meredith Canady

Partner, Dept. of Professional Practice, KPMG US

+1 212-909-5858

In response to the 2021 Invitation to Comment, Agenda Consultation, the FASB received feedback that stakeholders observed a lack of specific recognition, measurement and presentation guidance on accounting for government grants.

Applicability

  • Business entities

Relevant dates

  • June 13, 2022 – FASB issues Invitation to Comment
  • September 12, 2022 – Comment period ends

Key impacts

The FASB has a project on its technical agenda to consider incorporating the recognition, measurement and presentation guidance on accounting for government grants in IAS 20 into US GAAP.

To get feedback from stakeholders on how to proceed with the project, the FASB has issued an Invitation to Comment.

The Invitation to Comment asks whether the Board should move forward to incorporate the recognition, measurement and presentation guidance in IAS 20 and solicits specific stakeholder feedback on:

  • What aspects of the guidance from IAS 20 should be incorporated and why
  • Whether preparers currently apply IAS 20 by analogy or another model
  • What issues or challenges preparers have experienced or anticipate in application of IAS 20
  • Whether constituents currently receive enough information about the impact of government grants on an entity’s financial results
  • Whether constituents believe comparability and consistency between business entities and all other entities is important

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