Government Assistance
Overview
This Topic provides guidance on disclosures for various forms of government
assistance. ASC 832-10 notes the following:
Governments provide different forms of assistance to entities, and the
forms of assistance have varying structures, complexities, and terms.
Government assistance can include tax credits, cash grants, grants of
other assets, and project grants. Often, government assistance is
provided to an entity for a particular purpose, and the entity promises
to take specific actions. Generally accepted accounting principles
(GAAP) do not provide comprehensive recognition and measurement guidance
for many forms of government assistance received by business
entities.
This Topic provides guidance on disclosures for transactions with a
government that are accounted for by applying a grant or contribution
accounting model by analogy.