Wiley GAAP 2024

54ASC 832 GOVERNMENT ASSSISTANCE

• Perspective and Issues
  • Subtopics
• Definitions of Term
• Concepts, Rules, and Examples
  • Scope
  • Exhibit—Scope of ASC 832
  • Disclosure

PERSPECTIVE AND ISSUES

Subtopics

ASU 848 contains one Subtopic:

• ASU 832-10, Overall

DEFINITION OF TERM

ASC 832 contains one term in its Glossary: Not-for-Profit Entity. That definition can be found in Appendix A, Definitions of Terms.

CONCEPTS, RULES, AND EXAMPLES

The government provides entities with various forms of assistance, including:

• Tax credits,
• Cash grants,
• Grants of other assets, and
• Project grants.

  (ASC 832-10-05-1)

Scope

ASC 832 applies to all business entities that account for a transaction with a government by applying a grant or contribution accounting model by analogy to other accounting guidance. It does not apply to not-for-profit entities within the scope of ASC 958 and employee benefit plans within the scope of ASCs 960, 962, and 965. (ASC 832-10-15-2)

The guidance applies to transactions accounted for by analogizing to:

• A grant model, for example, in IAS 20, Accounting for Governmental Grants and Disclosure of Government Assistance, or
• A contribution accounting model, for example, in ASC 958-605, Not-for-Profit Entities—Revenue Recognition.

  (ASC 832-10-15-4)

Transactions with a government include assistance administered by governments that are:

• Domestic,
• Foreign,
• Local,
• Regional,
• National, and
• Entities related to those governments.

  (ASC 832-10-15-5)

The Basis for Conclusions ...