FASB Holds June 25 Meeting

At its June 25, 2025, meeting, the FASB discussed the feedback it received on its proposed ASU on accounting for government grants by business entities. The Board affirmed its decisions related to the following topics:

• The accounting model approach, which “would leverage the guidance in IAS 20, Accounting for Government Grants and Disclosure of Government Assistance, with targeted improvements.”
• The scope of the amendments.
• Recognition guidance.
• The definitions of a “grant related to an asset” and a “grant related to income.”
• Income statement presentation, disclosures, and implementation guidance.
• The recognition and measurement of liabilities related to a government grant in a business combination.
• The presentation of cash flows.
• Contingencies and repayments.
• Transition and effective date.

The Board directed the staff to draft a final ASU for a vote by written ballot. For more information, see the tentative Board decisions on the FASB’s Web site.