Wiley GAAP 2023

54ASC 832 GOVERNMENT ASSSISTANCE

• Technical Alert
  • ASU 2021-10
    • Guidance
    • Effective Dates
    • Transition
• Perspective and Issues
  • Subtopics
• Definitions of Term
• Concepts, Rules, and Examples
  • Scope
  • Exhibit—Scope of ASC 832
  • Disclosure
    • Disclosure examples
    • Entity does not expect ASC 832 to have a material impact on the financial statements
  • XYZ Pandemic-related Government assistance loans

TECHNICAL ALERT

ASU 2021-10

In November 2021, the FASB issued ASU 2021-10, Disclosures by Business Entities about Government Assistance. The FASB started a project on government assistance in 2014, and its research confirmed that there was diversity in practice and limited useful information to help entities determine accounting and disclosure for government assistance, for example, federal disaster assistance. The project lay more or less dormant until the COVID-19 pandemic increased the need for disclosure guidance related to government assistance. The Board decided to focus its attention on disclosures.

Guidance The ASUs objective is to increase the transparency of government assistance including the disclosure of

• The types of assistance,
• An entity's accounting for the assistance, and
• The effect of the assistance on an entity's financial statements.

The ASU also adds a new Topic, ASC 832.

Because the changes are currently effective, the ASU's detailed guidance is included in this chapter and in Appendix B, Financial Statements Disclosure Checklist.

Effective Dates The amendments are effective ...