This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FASB proposes enhancements to disclosures about government assistance agreements

  • FASB document Image

Nov 13, 2015

The FASB has issued a proposed Accounting Standards Update (ASU), “Disclosures by Business Entities About Government Assistance.”

The proposed ASU is designed to increase the transparency of disclosures that “businesses and other for-profit organizations” provide about government assistance arrangements that they enter into with governmental entities. The FASB’s primary reason for issuing the proposal is the lack of specific guidance on this topic in existing U.S. GAAP, which has led to diversity in practice.

Disclosures that entities within the proposal’s scope would be required to provide include the following:

  • “Information about the nature of the assistance, significant categories and the method applied to account for the government assistance.”
  • “Line items on the balance sheet and income statement that are affected by government assistance and applicable amounts.”
  • “Significant terms and conditions of the agreement including commitments and contingencies.”
  • “The amount of government assistance not recognized directly in any financial statement line item (unless impractical).”

Comments on the proposed ASU are due by February 10, 2016. For more information, see Deloitte's related Heads Up as well as the press release, FASB in Focus newsletter, and proposed ASU on the FASB’s Web site.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.