Government Grants Accounting Update Fills Hole in US Rules (2)

Businesses now have specific US guidance for the first time on how to record the value of government grants in their financial reports.

The Financial Accounting Standards Board published a final update Thursday following a years-long effort to plug a hole in the US rulebook. The project, advanced to final steps in June, provides recognition, measurement, and presentation guidance for government grants that certain businesses receive.

Despite a flood of relief during the height of the Covid-19 pandemic, there haven’t been specific US rules capturing how to account for those grants in financial reports. FASB Chair Richard Jones noted in ...