The US Financial Accounting Standards Board (FASB) on November 17 released an accounting standard update to require business entities to include information about certain types of government assistance that they receive in an annual disclosure in the notes to their financial statements.
The disclosure must include information about the nature of the transactions and accounting policy used to account for them, the balance sheet and income statement line items affected (with amounts), and any significant terms and conditions of the transactions.
For applicable entities, the changes are effective for financial statements issued for annual periods beginning after December 15, 2021.
FASB did not previously have in place formal guidance on accounting for government assistance received by business entities.
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