# ASC 832-10-25: Government Assistance — Overall — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/832/10/#25-recognition) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:5dd138e738385f5e8d6da002304f5fb764bec44f42075686cffa8ecb91393733 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 832-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/832/10/#25-recognition) SEC content: no #### Overall Guidance ##### [832-10-25-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-1) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:fa4c218aab5a70baea9c62fa5dfcb1024d4562e063f6cf9df6b21d7aea1acf43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)An entity shall not recognize a [government grant](https://asc.understandingaccounting.org/glossary/g/#government-grant "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A transfer of a monetary asset or a tangible nonmonetary asset, other than in an exchange transaction (including an exchange transaction that may be at a significant discount to fair value), from a government to an entity except for a not-for-profit entity and an employee benefit plan within the scope of Topics 960, 962, and 965 on plan accounting.") until: 1. a It is [probable](https://asc.understandingaccounting.org/glossary/p/#probable "The future event or events are likely to occur.") that both of the following criteria are met: 1. 1 The entity will comply with the conditions attached to the government grant. 2. 2 The government grant will be received. 2. b An entity meets the recognition guidance for a [grant related to an asset](https://asc.understandingaccounting.org/glossary/g/#grant-related-to-an-asset "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A government grant, or part of a government grant, that is conditioned on the purchase, construction, or acquisition of an asset (for example, a long-lived asset or inventory). Other conditions also may be attached, such as restricting the type or location of the asset, the periods during which the asset is to be acquired or held, or the disposal of the asset.") in paragraphs [832-10-25-4 through 25-8](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4) or a [grant related to income](https://asc.understandingaccounting.org/glossary/g/#grant-related-to-income "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A government grant, or part of a government grant, other than a grant related to an asset (for example, a grant that reimburses an entity for operating expenses).") in paragraph [832-10-25-9](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-9). ##### [832-10-25-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-2) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:28f6fd88255dfb6ab8e3c8aa0e7d15ccbf4c8b410363feaa55e744e63318b656 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)Receipt of a government grant does not, in and of itself, provide conclusive evidence that the conditions attached to the government grant have been or will be fulfilled. A government grant receivable or liability may be recognized because of differences in the timing between when an entity receives a government grant and when the guidance in paragraph [832-10-25-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-1) has been met. An entity shall not recognize a receivable on the balance sheet unless and until the recognition guidance in paragraph [832-10-25-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-1) is met. ##### [832-10-25-3](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-3) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:70e448ae3f73b0f8e838703e8d4e6132ebbdbf11bec9aaa00335026c156a8f1a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)A [forgivable loan](https://asc.understandingaccounting.org/glossary/f/#forgivable-loan "(P) December 16, 2028; (N) December 16, 2029832-10-65-2A loan for which the lender agrees to waive repayment under certain prescribed conditions established by a government.") shall be treated as a government grant when the entity meets the guidance in paragraph [832-10-25-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-1), including when it is probable that the entity will meet the terms for forgiveness of the loan. #### Grant Related to an Asset ##### [832-10-25-4](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:85ca60ffd14434e2b90bd98ba7dadd07e4559c9c786522bf6fcf87a2c12919cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)An entity shall recognize a grant related to an asset on the balance sheet as the entity incurs the related costs for which the government grant is intended to compensate using either of the following approaches: 1. a Separately recognize the grant as deferred income. (This is referred to as the deferred income approach.) 2. b Reflect the grant as an adjustment to the cost basis in determining the carrying amount of the asset. (This is referred to as the cost accumulation approach.) ##### [832-10-25-5](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-5) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:521b62e9b76f25723c2968f877fd54ff2449358b1f96cc33b14f3a560acf4bc7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)A grant related to an asset that is accounted for using the deferred income approach shall be recognized in earnings on a systematic and rational basis over the periods in which the entity recognizes as expenses the related costs for which the government grant is intended to compensate. The expenses that are recognized for a grant related to an asset could include depreciation, gain or loss on sale, or impairment. ##### [832-10-25-6](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-6) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:7b7fc2a7b2a16e3fef2f9ce1a57fdac84b9435b528cfc36d4fd6ff5e30424ef1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)A government grant related to a nondepreciable asset that is accounted for using the deferred income approach shall be subsequently recognized in earnings on a systematic and rational basis over the periods in which the entity incurs the costs to which the grant relates. ##### [832-10-25-7](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-7) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:106d753250dac25df87ccb2cba01d5377ce44998aca6141ef41610f920e582ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)For a grant related to an asset that is accounted for using the cost accumulation approach, there is no separate subsequent recognition of the government grant proceeds in earnings because they have been reflected in the carrying amount of the asset. The carrying amount of the asset that includes the government grant proceeds shall be used to determine depreciation or other subsequent accounting for that asset. ##### [832-10-25-8](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-8) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:759364dce3b058ddb36a25c35d515f5beca75ba463b1a248dd49eb1f96349409 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)A government grant may take the form of a transfer of a tangible nonmonetary asset, such as land or other resources. The receipt of a tangible nonmonetary asset that is determined to be a grant related to an asset shall be recognized in accordance with paragraphs [832-10-25-4 through 25-7](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4) and measured in accordance with paragraph [832-10-30-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-30-1). #### Grant Related to Income ##### [832-10-25-9](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-9) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:3cbcd9d922f16d4069dc66c3604ab00471139c2fa304e0d5c84702bfa340cc2f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)A grant related to income shall be recognized in earnings on a systematic and rational basis over the periods in which the entity recognizes as expenses the related costs for which the grant is intended to compensate. ##### [832-10-25-10](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-10) Pending content: yes Source downloaded (UTC): 2026-09-10T01:48:22.222Z to 2026-09-10T01:48:22.222Z Record version: sha256:e28d6f78ff63f8f8f69a70334d068f11d5623aecb675ed0d2f418c8d761e1117 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2028; (N) December 16, 2029Transition guidance: [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)A grant related to income that provides an entity with compensation for expenses or losses previously incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognized in earnings in the period in which the entity meets the guidance in paragraph [832-10-25-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-1).