FASB ASU 2021-10: Government Assistance (Topic 832)
In November 2021, the Financial Accounting Standards Board (FASB) issued ASU 2010-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. The new accounting standard was released to increase the transparency of government assistance, including disclosure of:
- Types of assistance
- Entity’s accounting for assistance
- Effect of the assistance on the entity’s financial statements
The standard was also updated to address the lack of authoritative guidance specific to government assistance under generally accepted accounting principles (GAAP). Required disclosures will provide comparable and transparent information for FS users. The new standard applies to business entities, except for the following types: not-for-profit (NFP) entities within the scope of Topic 958, employee benefit plans within the scope of Topic 960, Topic 962, and Topic 965, that account for a transaction with a government applying a grant or contribution model.
What to Know About FASB ASU 2021-10 Accounting Standard
FASB ASU 2021-10 is effective for financial statements issued for annual periods beginning after December 15, 2021, with early application permitted. The following annual disclosures are required:
- Information regarding the nature of transactions and accounting policy used to account for transactions
- Line items on the balance sheet and income statement are affected by the transactions and amounts applicable to each line item
- Significant terms and conditions of the transactions, including commitments and contingencies
Contact Leone, McDonnell & Roberts today to speak with our accounting professionals about FASB ASU 2021-10
