US Grants Accounting Plan Draws on Global Rules (Correct)

A new plan to plug a hole in the US accounting rulebook would streamline how businesses record the value of government incentives that help cover the cost of equipment purchases, staff training, and even building construction.

The Financial Accounting Standards Board on Tuesday issued a draft plan that borrows heavily from international accounting rules to require that US companies recognize and measure certain asset- and income-based grants. The proposal is meant to reduce variation in corporate accounting by giving companies a single set of guidance under US generally accepted accounting principles, or GAAP.

A flood of government relief kept businesses ...