FASB Issues Guidance on the Accounting for Government Grants

The FASB has issued ASU 2025-10, Accounting for Government Grants Received by Business Entities, which adds guidance to FASB Accounting Standards Codification Topic (ASC) 832, Government Assistance, on the recognition, measurement, and presentation of government grants. In the absence of such guidance, many for-profit entities that account for government grants historically have analogized to other GAAP, including IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, or ASC 958-605, Not-for-Profit Entities: Revenue Recognition. In developing the ASU’s recognition and measurement framework, the FASB largely leveraged the guidance in IAS 20.

For more information, see Deloitte’s December 4, 2025, Heads Up as well as the press release on the FASB’s Web site.