Disclosures by Business Entities about Government
Accounting Standards Update 2021-10—Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance
On November 17, 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance.
The amendments in the Update require the following annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy:
- Information about the nature of the transactions and the related accounting policy used to account for the transactions
- The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item
- Significant terms and conditions of the transactions, including commitments and contingencies.
Transition and Effective Dates
The amendments in the Update are effective for all entities within their scope for financial statements issued for annual periods beginning after December 15, 2021. Early application of the amendments is permitted.
An entity should apply the amendments in the Update either (1) prospectively to all transactions within the scope of the amendments that are reflected in financial statements at the date of initial application and new transactions that are entered into after the date of initial application or (2) retrospectively to those transactions.