The disclosure requirements in ASC 832 apply only to business entities that account for government assistance under specific accounting models. Our issues in-depth addresses implementation questions regarding scope and the nature of the required disclosures.
There is limited US GAAP guidance on accounting for government assistance, which has led to diversity in practice. Although the FASB has not provided specific accounting guidance, it has created disclosure requirements for the receipt of certain types of government assistance. Such assistance has become increasingly common and can take different forms − e.g. grants, tax credits and loan guarantees.
The disclosure requirements – contained in ASC 832 – apply only to business entities that account for government assistance under specific accounting models. There are several implementation considerations regarding the limited scope of ASC 832 and the nature of the disclosures.
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