Our new Financial Reporting Insights, FASB issues guidance on accounting for government grants, explains the requirements of Accounting Standards Update (ASU) 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities, which was issued by the Financial Accounting Standards Board in December 2025.
The new standard closely aligns with International Accounting Standard (IAS) 20, Accounting for Government Grants and Disclosure of Government Assistance, covering monetary and tangible nonmonetary assets received by business entities from governments while excluding exchange transactions.
