New FASB standard requires businesses to disclose government aid

November 20, 2021

A FASB standard issued Wednesday, Nov. 17, will require businesses to disclose information in the notes to the financial statements about certain government assistance they receive.

GAAP previously contained no specific, authoritative guidance for business entities on accounting for or disclosing government assistance received.

The new standard, which excludes not-for-profits and employee benefit plans, requires disclosure of cash grants and grants of other assets.

The standard takes effect for financial statements issued for annual periods beginning after Dec. 15.

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