# ASC Topic 832: Government Assistance

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/832/)

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): 2026-09-10T01:48:12.488Z to 2026-09-10T01:48:40.475Z

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## Machine-generated topic summary

ASC 832 addresses government assistance received by business entities (not-for-profits and Topic 960/962/965 employee benefit plans are outside its scope). As codified today it is a disclosure-only topic: for transactions with a government accounted for by analogy to a grant or contribution model, an entity must annually disclose the nature of the transaction, its accounting policy, the affected line items and amounts, and significant terms and conditions (832-10-50-1 through 50-5), omitting legally prohibited information only with a description of its general nature. ASU 2025-10 turns the Topic into a full recognition and measurement model for "government grants": nothing is recognized until it is probable both that the entity will comply with the grant's conditions and that the grant will be received (832-10-25-1), with grants related to assets recognized as related costs are incurred under an elected deferred income or cost accumulation approach (832-10-25-4 through 25-7) and grants related to income recognized in earnings on a systematic and rational basis as the related costs are expensed (832-10-25-9), or immediately if they compensate for past costs or give immediate support (832-10-25-10). The single most important idea is the probability-of-compliance-and-receipt threshold: receipt of cash alone does not prove the conditions were met, and repayments unwind the grant first against unamortized deferred income or the asset's carrying amount (832-10-35-1).

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## ASC 832-10: Government Assistance — Overall

### Machine-generated study aids

```json
{
  "summary": "ASC 832-10 governs government assistance received by business entities (not-for-profits and plans under Topics 960, 962, and 965 are excluded). In its current form it is a disclosure-only topic requiring annual disclosure of the nature, accounting policy, financial statement effects, and significant terms of transactions with a government accounted for by analogy to a grant or contribution model. ASU 2025-10 converts it into a full recognition and measurement model for \"government grants,\" under which a grant is recognized only when it is probable the entity will comply with the grant's conditions and receive the grant (832-10-25-1), with grants related to assets recognized under either a deferred income approach or a cost accumulation approach and grants related to income recognized in earnings on a systematic and rational basis as the related costs are expensed.",
  "key_points": [
    "Scope: the Topic applies to all entities except not-for-profit entities and employee benefit plans within Topics 960, 962, and 965 (832-10-15-2); after ASU 2025-10 it excludes income tax credits within Topic 740, below-market interest rate loans, government guarantees, and (per ASU on Subtopic 818-20) environmental credits (832-10-15-4A), as well as intangible assets/services, tax abatements, government ownership, nongovernmental contributions under 958-605, and Topic 606/610-20 transactions (832-10-55-5).",
    "Recognition threshold: no government grant is recognized until it is probable both that the entity will comply with the grant's conditions and that the grant will be received, and the asset-grant or income-grant recognition guidance is met (832-10-25-1); mere receipt of cash is not conclusive evidence conditions are met, and no receivable is recognized until the threshold is satisfied (832-10-25-2).",
    "Grants related to an asset are recognized as the entity incurs the related costs using an election of either the deferred income approach (separate deferred income amortized into earnings as depreciation, gain/loss on sale, or impairment is recognized) or the cost accumulation approach (grant reduces the asset's carrying amount with no separate earnings recognition) (832-10-25-4 through 25-7).",
    "Grants related to income are recognized in earnings on a systematic and rational basis over the periods the related costs are expensed (832-10-25-9), or immediately when the grant compensates for previously incurred expenses/losses or provides immediate financial support with no future related costs (832-10-25-10).",
    "A forgivable loan is treated as a government grant once it is probable the entity will meet the forgiveness terms (832-10-25-3); a tangible nonmonetary asset grant is measured at fair value under the deferred income approach and at the entity's cost under the cost accumulation approach (832-10-30-1).",
    "Repayment: repayment of an income grant is applied first against unamortized deferred income with the excess to earnings immediately; repayment of an asset grant increases the asset's carrying amount (cost accumulation, with catch-up of depreciation that would have been recognized) or reduces deferred income, with the excess to earnings (832-10-35-1), and the new carrying amount drives impairment and depreciation (832-10-35-2).",
    "Disclosure (annual, 832-10-50-1): nature of the transaction/grant and form received, accounting policies used (235-10-50-1), affected balance sheet and income statement line items and amounts, useful life for cost-accumulation asset grants, fair value of tangible nonmonetary assets received, and significant terms and conditions such as duration, commitments, recapture provisions, and other contingencies (832-10-50-3 through 50-4); legally prohibited information may be omitted only with a description of its general nature (832-10-50-5)."
  ],
  "categories": [
    "Recognition",
    "Subsequent measurement",
    "Disclosure",
    "Presentation"
  ],
  "audience_level": "intermediate",
  "student_note": "Historically business entities had no GAAP recognition model for government grants and analogized to IAS 20 or ASC 958-605 with only Topic 832 disclosures; ASU 2025-10 (effective 2029/2030, early adoption permitted) supplies an actual recognition and measurement model, so know which version applies. The most common misunderstanding is thinking cash receipt triggers income recognition—recognition instead follows the probable-compliance test and the periods in which the compensated costs are expensed.",
  "related_topics": [
    "958-605",
    "740",
    "606",
    "610-20",
    "818-20",
    "235-10"
  ],
  "key_concepts": [
    "government grant",
    "grant related to an asset",
    "grant related to income",
    "deferred income approach",
    "cost accumulation approach",
    "probable recognition threshold",
    "forgivable loan",
    "recapture provisions"
  ]
}
```

Source downloaded (UTC): 2026-09-10T01:48:12.488Z to 2026-09-10T01:48:12.488Z

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## ASC 832-10-00: 00 Status

[Read section](https://asc.understandingaccounting.org/asc/832/10/#00-status)

SEC content: no

##### [832-10-00-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-00-1)

Pending content: no

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The following table identifies the changes made to this Subtopic.

**Note:** Topic title changed by Accounting Standards Update No. 2025-10 on 12/04/2025 from Government Assistance to Government Grants.

<table class="asc-table" frame="all" id="SL128343007-244228"><tbody><tr><td class="entry"><strong class="ph b">Paragraph</strong></td><td class="entry"><strong class="ph b">Action</strong></td><td class="entry"><strong class="ph b">Accounting Standards Update</strong></td><td class="entry"><strong class="ph b">Date</strong></td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/e/#environmental-credit" class="term" title="(P) December 16, 2027; (N) December 16, 2028818-10-65-1An enforceable right that is acquired, internally generated, granted by a regulatory agency or its designee(s), or received in a nonreciprocal transfer that is not a grant from a regulator or its designee(s) that meets all of the following criteria:Lacks physical substance and is not a financial asset.Is represented to prevent, control, reduce, or remove emissions or other pollution.Is, or previously was, separately transferable in an exchange transaction. If an item is no longer separately transferable in an exchange transaction, an entity must be able to use that item to satisfy an environmental credit obligation to meet this criterion.Is not an income tax credit that may be used to settle an entity’s income tax liability, regardless of whether the entity has a tax liability or intends to use the credit for that purpose.An environmental credit that meets the above criteria may exist in a variety of forms, including (but not limited to) credits, certificates, allowances, and offsets."><span>Environmental Credit</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2026-02/" class="xref">Accounting Standards Update No. 2026-02</a></td><td class="entry">05/19/2026</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/e/#environmental-credit-obligation" class="term" title="(P) December 16, 2027; (N) December 16, 2028818-10-65-1A regulatory compliance obligation arising from existing or enacted laws, statutes, or ordinances represented to prevent, control, reduce, or remove emissions or other pollution that may be settled with environmental credits. Obligations within the scope of Subtopic 410-30 are not environmental credit obligations."><span>Environmental Credit Obligation</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2026-02/" class="xref">Accounting Standards Update No. 2026-02</a></td><td class="entry">05/19/2026</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/e/#exchange" class="term" title="An exchange (or exchange transaction) is a reciprocal transfer between two entities that results in one of the entities acquiring assets or services or satisfying liabilities by surrendering other assets or services or incurring other obligations."><span>Exchange</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/f/#fair-value" class="term" title="The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date."><span>Fair Value</span></a> (2<sup class="ph sup">nd</sup> def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/f/#financial-asset" class="term" title="Cash, evidence of an ownership interest in an entity, or a contract that conveys to one entity a right to do either of the following: Receive cash or another financial instrument from a second entity Exchange other financial instruments on potentially favorable terms with the second entity."><span>Financial Asset</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2026-02/" class="xref">Accounting Standards Update No. 2026-02</a></td><td class="entry">05/19/2026</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/f/#forgivable-loan" class="term" title="(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."><span>Forgivable Loan</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/g/#government-grant" class="term" title="(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."><span>Government Grant</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/g/#grant-related-to-an-asset" class="term" title="(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."><span>Grant Related to an Asset</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/g/#grant-related-to-income" class="term" title="(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)."><span>Grant Related to Income</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/i/#income-taxes" class="term" title="Domestic and foreign federal (national), state, and local (including franchise) taxes based on income."><span>Income Taxes</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2026-02/" class="xref">Accounting Standards Update No. 2026-02</a></td><td class="entry">05/19/2026</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/m/#market-participants" class="term" title="Buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics: They are independent of each other, that is, they are not related parties, although the price in a related-party transaction may be used as an input to a fair value measurement if the reporting entity has evidence that the transaction was entered into at market terms They are knowledgeable, having a reasonable understanding about the asset or liability and the transaction using all available information, including information that might be obtained through due diligence efforts that are usual and customary They are able to enter into a transaction for the asset or liability They are willing to enter into a transaction for the asset or liability, that is, they are motivated but not forced or otherwise compelled to do so."><span>Market Participants</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/m/#monetary-assets" class="term" title="Money or a claim to receive a sum of money the amount of which is fixed or determinable without reference to future prices of specific goods or services."><span>Monetary Assets</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/n/#nonreciprocal-transfer" class="term" title="Nonreciprocal transfer is a transfer of assets or services in one direction, either from an entity to its owners (whether or not in exchange for their ownership interests) or to another entity, or from owners or another entity to the entity. An entity's reacquisition of its outstanding stock is an example of a nonreciprocal transfer."><span>Nonreciprocal Transfer</span></a> (1st def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2026-02/" class="xref">Accounting Standards Update No. 2026-02</a></td><td class="entry">05/19/2026</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity" class="term" title="An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans."><span>Not-for-Profit Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-10/" class="xref">Accounting Standards Update No. 2021-10</a></td><td class="entry">11/17/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/o/#orderly-transaction" class="term" title="A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (for example, a forced liquidation or distress sale)."><span>Orderly Transaction</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#probable" class="term" title="The future event or events are likely to occur."><span>Probable</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/p/#public-business-entity" class="term" title="A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC."><span>Public Business Entity</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/r/#related-parties" class="term" title="Related parties include: Affiliates of the entity Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity Trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management Principal owners of the entity and members of their immediate families Management of the entity and members of their immediate families Other parties with which the entity may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests."><span>Related Parties</span></a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/glossary/s/#security" class="term" title="A share, participation, or other interest in property or in an entity of the issuer or an obligation of the issuer that has all of the following characteristics: It is either represented by an instrument issued in bearer or registered form or, if not represented by an instrument, is registered in books maintained to record transfers by or on behalf of the issuer. It is of a type commonly dealt in on securities exchanges or markets or, when represented by an instrument, is commonly recognized in any area in which it is issued or dealt in as a medium for investment. It either is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations."><span>Security</span></a> (2<sup class="ph sup">nd</sup> def.)</td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"></td><td class="entry"></td><td class="entry"></td><td class="entry"></td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-05-1" class="xref">832-10-05-1</a></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-05-1" class="xref">832-10-05-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-10/" class="xref">Accounting Standards Update No. 2021-10</a></td><td class="entry">11/17/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-05-2" class="xref">832-10-05-2</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-05-2" class="xref">832-10-05-2</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-10/" class="xref">Accounting Standards Update No. 2021-10</a></td><td class="entry">11/17/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-15-1" class="xref">832-10-15-1 through 15-5</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-10/" class="xref">Accounting Standards Update No. 2021-10</a></td><td class="entry">11/17/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-15-3" class="xref">832-10-15-3</a></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-15-3A" class="xref">832-10-15-3A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-15-4" class="xref">832-10-15-4</a></td><td class="entry">Superseded</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-15-4A" class="xref">832-10-15-4A</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2026-02/" class="xref">Accounting Standards Update No. 2026-02</a></td><td class="entry">05/19/2026</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-15-4A" class="xref">832-10-15-4A</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-15-5" class="xref">832-10-15-5</a></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-25-1" class="xref">832-10-25-1 through 25-10</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-30-1" class="xref">832-10-30-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-35-1" class="xref">832-10-35-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-35-2" class="xref">832-10-35-2</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-45-1" class="xref">832-10-45-1 through 45-3</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-50-1" class="xref">832-10-50-1 through 50-5</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-10/" class="xref">Accounting Standards Update No. 2021-10</a></td><td class="entry">11/17/2021</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-50-2" class="xref">832-10-50-2 through 50-4</a></div></td><td class="entry">Amended</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3A" class="xref">832-10-50-3A through 50-3C</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><div class="xref-range displayInline"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-55-1" class="xref">832-10-55-1 through 55-14</a></div></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-65-1" class="xref">832-10-65-1</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2021-10/" class="xref">Accounting Standards Update No. 2021-10</a></td><td class="entry">11/17/2021</td></tr><tr><td class="entry"><a href="https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2" class="xref">832-10-65-2</a></td><td class="entry">Added</td><td class="entry"><a href="https://asc.understandingaccounting.org/updates/asu-2025-10/" class="xref">Accounting Standards Update No. 2025-10</a></td><td class="entry">12/04/2025</td></tr></tbody></table>

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## ASC 832-10-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/832/10/#05-overview-and-background)

SEC content: no

##### [832-10-05-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-05-1)

Pending content: yes

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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.

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)[Paragraph superseded by Accounting Standards Update No. 2025-10.](https://asc.understandingaccounting.org/updates/asu-2025-10/)

##### [832-10-05-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-05-2)

Pending content: yes

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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.

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)This Topic provides guidance on the accounting for [government grants](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.") received by business entities.

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## ASC 832-10-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/832/10/#15-scope-and-scope-exceptions)

SEC content: no

#### Overall Guidance

##### [832-10-15-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-15-1)

Pending content: no

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The Scope Section of the Overall Subtopic establishes the scope for this Topic.

#### Entities

##### [832-10-15-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-15-2)

Pending content: no

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The guidance in this Topic applies to all entities except [not-for-profit entities](https://asc.understandingaccounting.org/glossary/n/#not-for-profit-entity "An entity that possesses the following characteristics, in varying degrees, that distinguish it from a business entity: Contributions of significant amounts of resources from resource providers who do not expect commensurate or proportionate pecuniary return Operating purposes other than to provide goods or services at a profit Absence of ownership interests like those of business entities. Entities that clearly fall outside this definition include the following: All investor-owned entities Entities that provide dividends, lower costs, or other economic benefits directly and proportionately to their owners, members, or participants, such as mutual insurance entities, credit unions, farm and rural electric cooperatives, and employee benefit plans.") and employee benefit plans within the scope of Topics 960, 962, and 965 on plan accounting.

#### Transactions

##### [832-10-15-3](https://asc.understandingaccounting.org/asc/832/10/#832-10-15-3)

Pending content: yes

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If an entity determines that the accounting for a transaction with a government is not specified within the scope of authoritative generally accepted accounting principles (GAAP), paragraph [105-10-05-2](https://asc.understandingaccounting.org/asc/105/10/#105-10-05-2) requires that the entity first consider accounting principles for similar transactions or events within an authoritative source of GAAP for that entity and then consider nonauthoritative guidance from other sources.

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)[Paragraph superseded by Accounting Standards Update No. 2025-10.](https://asc.understandingaccounting.org/updates/asu-2025-10/)

##### [832-10-15-3A](https://asc.understandingaccounting.org/asc/832/10/#832-10-15-3A)

Pending content: yes

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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)The guidance in this Topic applies to all [government grants](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.") received by entities within the scope of this Topic.

##### [832-10-15-4](https://asc.understandingaccounting.org/asc/832/10/#832-10-15-4)

Pending content: yes

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The guidance in this Topic applies to entities that have accounted for transactions with a government by analogizing to a grant or contribution accounting model (for example, a grant model within IFRS Standards or a contribution model within Subtopic 958-605 on not-for-profit entities—revenue recognition).

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)[Paragraph superseded by Accounting Standards Update No. 2025-10.](https://asc.understandingaccounting.org/updates/asu-2025-10/)

##### [832-10-15-4A](https://asc.understandingaccounting.org/asc/832/10/#832-10-15-4A)

Pending content: yes

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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)The guidance in this Topic does not apply to the following:

1.  a
    
    Transactions within the scope of Topic 740 on income taxes (for example, nonrefundable, nontransferable income tax credits)
    
2.  b
    
    The benefit of below-market interest rate loans
    
3.  c
    
    Government guarantees.
    

Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:

[818-10-65-1](https://asc.understandingaccounting.org/asc/818/10/#818-10-65-1)The guidance in this Topic does not apply to the following:

1.  a
    
    Transactions within the scope of Topic 740 on income taxes (for example, nonrefundable, nontransferable income tax credits)
    
2.  b
    
    The benefit of below-market interest rate loans
    
3.  c
    
    Government guarantees
    
4.  d
    
    [Environmental credits](https://asc.understandingaccounting.org/glossary/e/#environmental-credit "(P) December 16, 2027; (N) December 16, 2028818-10-65-1An enforceable right that is acquired, internally generated, granted by a regulatory agency or its designee(s), or received in a nonreciprocal transfer that is not a grant from a regulator or its designee(s) that meets all of the following criteria:Lacks physical substance and is not a financial asset.Is represented to prevent, control, reduce, or remove emissions or other pollution.Is, or previously was, separately transferable in an exchange transaction. If an item is no longer separately transferable in an exchange transaction, an entity must be able to use that item to satisfy an environmental credit obligation to meet this criterion.Is not an income tax credit that may be used to settle an entity’s income tax liability, regardless of whether the entity has a tax liability or intends to use the credit for that purpose.An environmental credit that meets the above criteria may exist in a variety of forms, including (but not limited to) credits, certificates, allowances, and offsets.") within the scope of Subtopic 818-20.

##### [832-10-15-5](https://asc.understandingaccounting.org/asc/832/10/#832-10-15-5)

Pending content: yes

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Transactions with a government, as used in this Topic, include assistance that is administered by domestic, foreign, local (for example, city, town, county, and municipal), regional (for example, state, provincial, and territorial), and national (federal) governments and entities related to those governments. Examples of entities related to governments include departments, independent agencies, boards, commissions, and component units. Government assistance also can be administered by intergovernmental organizations and other types of organizations such as nongovernmental organizations or government-sponsored enterprises that have authority from a government to administer assistance on its behalf.

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, as used in this Topic, includes grants that are administered by domestic, foreign, local (for example, city, town, county, and municipal), regional (for example, state, provincial, and territorial), and national (federal) governments and entities related to those governments. Examples of entities related to governments include departments, independent agencies, boards, commissions, and component units. A government grant also can be administered by intergovernmental organizations and other types of organizations such as nongovernmental organizations or government-sponsored enterprises that have authority from a government to administer grants on its behalf.

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## ASC 832-10-20: 20 Glossary

[Read section](https://asc.understandingaccounting.org/asc/832/10/#20-glossary)

SEC content: no

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## 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

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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

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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).

Source downloaded (UTC): 2026-09-10T01:48:24.921Z to 2026-09-10T01:48:24.921Z

Record version: sha256:aef51e445a611e7e6f75f06c2f924ac8670e056e0dc799a0044232b52919ca39

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 832-10-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/832/10/#30-initial-measurement)

SEC content: no

#### Government Grant of a Tangible Nonmonetary Asset

##### [832-10-30-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-30-1)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:48:24.921Z to 2026-09-10T01:48:24.921Z

Record version: sha256:f917bab9536a71034fdf3d7cc9033f2dbcbb42db590207436d232b8881801503

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)If the deferred income approach is elected in accordance with paragraph [832-10-25-4(a)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4), the receipt of a tangible nonmonetary asset that is determined to be 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.") shall be initially measured at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") when the grant is recognized on the balance sheet. If the cost accumulation approach is elected in accordance with paragraph [832-10-25-4(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4), the receipt of a tangible nonmonetary asset that is determined to be a grant related to an asset shall be recognized at the cost to the entity.

Source downloaded (UTC): 2026-09-10T01:48:26.832Z to 2026-09-10T01:48:26.832Z

Record version: sha256:961eeb55949a68e788078399856579d7674f05bf644d6cbf0d279ce8b828fa2f

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 832-10-35: 35 Subsequent Measurement

[Read section](https://asc.understandingaccounting.org/asc/832/10/#35-subsequent-measurement)

SEC content: no

#### Repayment of a Government Grant

##### [832-10-35-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-35-1)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:48:26.832Z to 2026-09-10T01:48:26.832Z

Record version: sha256:78e8edd6fd10935099c4ff5e716bac71c8da9d6a09b0b6d661ec10215da89597

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](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.") that becomes repayable shall be accounted for as follows:

1.  a
    
    Repayment of 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).") shall be applied first against the unamortized deferred income recognized related to the grant. To the extent that the repayment exceeds the unamortized deferred income or when no deferred income exists, the repayment shall be recognized immediately in earnings.
    
2.  b
    
    Repayment of 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.") shall be recognized by increasing the carrying amount of the asset (if the cost accumulation approach is applied) or by reducing the deferred income balance (if the deferred income approach is applied) by the amount repayable. When applying the cost accumulation approach, all related expenses such as the cumulative depreciation (or change in previously recognized gain or loss on sale) that would have been recognized in earnings to date in the absence of the government grant shall be recognized immediately in earnings. If the deferred income approach is applied, to the extent that the repayment exceeds the unamortized deferred income, the repayment shall be recognized immediately in earnings.

##### [832-10-35-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-35-2)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:48:26.832Z to 2026-09-10T01:48:26.832Z

Record version: sha256:73e600479745d5773306d7ca6c208e2d24a1cd9656887b375c8d27fb1429ea01

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)If repayment of a grant related to an asset results in a new carrying amount of the asset, an entity shall consider the new carrying amount when evaluating the asset for impairment, determining depreciation, and determining other subsequent accounting for that asset.

Source downloaded (UTC): 2026-09-10T01:48:30.518Z to 2026-09-10T01:48:30.518Z

Record version: sha256:df67674c66a5cc936da4bbef627ea391386a870aa366f43cc0a378366bd5aef9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 832-10-45: 45 Other Presentation Matters

[Read section](https://asc.understandingaccounting.org/asc/832/10/#45-other-presentation-matters)

SEC content: no

#### Grant Related to an Asset

##### [832-10-45-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-1)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:48:30.518Z to 2026-09-10T01:48:30.518Z

Record version: sha256:c6c907f1298285e3aa03c172a4c9860418e66d623d9f41fe2a268131a80f6e2b

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](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.") that is accounted for using the deferred income approach in accordance with paragraph [832-10-25-4(a)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4) shall be presented on the balance sheet as deferred income and presented as part of earnings in either of the following ways:

1.  a
    
    Separately under a general heading such as other income
    
2.  b
    
    Deducted from the related expense (for example, depreciation, gain or loss on sale, or impairment).

##### [832-10-45-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-2)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:48:30.518Z to 2026-09-10T01:48:30.518Z

Record version: sha256:bd74e3fbd2e0ccfbc3fca0e6c04611bf6d7aab1d861bcda183924cba4b9c2c55

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 cost accumulation approach in accordance with paragraph [832-10-25-4(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4) shall be presented on the balance sheet as part of the carrying amount of the asset. There shall be no separate subsequent presentation of the [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.") proceeds in earnings because they have been reflected in the carrying amount of the asset.

#### Grant Related to Income

##### [832-10-45-3](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-3)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:48:30.518Z to 2026-09-10T01:48:30.518Z

Record version: sha256:a77b2a09da74c32ee4f67a228a46b097b6933cb5f892029d57dc122fed3a4ad9

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](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).") shall be presented as part of earnings in either of the following ways:

1.  a
    
    Separately under a general heading such as other income
    
2.  b
    
    Deducted from the related expense.

Source downloaded (UTC): 2026-09-10T01:48:33.179Z to 2026-09-10T01:48:33.179Z

Record version: sha256:0ba4fba0cbaf7531628e69088af821c6eb29eed0f8e40da3ada4701bfefc4653

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 832-10-50: 50 Disclosure

[Read section](https://asc.understandingaccounting.org/asc/832/10/#50-disclosure)

SEC content: no

##### [832-10-50-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:48:33.179Z to 2026-09-10T01:48:33.179Z

Record version: sha256:b0727efd467acef7204b2f367e5756c5a329d856c07ee60fbb367880b132e588

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity shall provide the disclosures required by this Topic for annual periods.

##### [832-10-50-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-2)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:48:33.179Z to 2026-09-10T01:48:33.179Z

Record version: sha256:72c01bc4f0c87daeddde4b01f725022636fa6febe7a13e7f7c9484fece65e306

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The objective of disclosures about an entity's transactions with a government within the scope of this Topic is to provide information that enables an investor or other financial statement user to better assess all the following:

1.  a
    
    The nature of the transactions, the related accounting policies used to account for the transactions, and the effect of the transactions on an entity's financial statements
    
2.  b
    
    Significant terms and conditions of the transactions.
    

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)The objective of disclosures about 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.")is to provide information that enables an investor or other financial statement user to better assess all the following:

1.  a
    
    The nature of the grant, the related accounting policies used to account for the grant, and the effect of the grant on an entity's financial statements
    
2.  b
    
    Significant terms and conditions of the grant.

#### Nature of the Assistance, Related Accounting Policies, and Effect on Financial Statement Amounts

##### [832-10-50-3](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3)

Pending content: yes

Source downloaded (UTC): 2026-09-10T01:48:33.179Z to 2026-09-10T01:48:33.179Z

Record version: sha256:f75f8a4ca4af90ae14ed3665a583606a50444773630f6e52234de4be7cce421a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


An entity shall disclose the following about transactions with a government within the scope of this Topic:

1.  a
    
    The nature of the transactions, including a general description of the transactions and the form in which the assistance has been received (for example, cash or other assets)
    
2.  b
    
    The accounting policies used to account for the transactions as required by paragraph [235-10-50-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-1)
    
3.  c
    
    The line items on the balance sheet and income statement that are affected by the transactions, and the amounts applicable to each financial statement line item in the current reporting period.
    

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)

<table class="asc-table" frame="top"><tbody><tr><td class="entry"><em class="ph i"><strong class="ph b">Editor's Note</strong>: Paragraph 832-10-50-3 will be amended upon transition, together with its heading:</em></td></tr><tr><td class="entry">&gt; <strong class="ph b">Nature of the Government Grant, Related Accounting Policies, and Effect on Financial Statement Amounts</strong></td></tr></tbody></table>

An entity shall disclose the following about a government grant:

1.  a
    
    The nature of the grant, including a general description of the grant and the form in which the grant has been received (for example, cash or tangible nonmonetary assets)
    
2.  b
    
    The accounting policies used to account for the grant as required by paragraph [235-10-50-1](https://asc.understandingaccounting.org/asc/235/10/#235-10-50-1)(for example, 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."), whether the deferred income approach or the cost accumulation approach is applied or for 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)."), whether the grant is presented separately under a general heading such as other income or deducted from the related expense).
    
3.  c
    
    [Subparagraph superseded by Accounting Standards Update No. 2025-10.](https://asc.understandingaccounting.org/updates/asu-2025-10/)

##### [832-10-50-3A](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3A)

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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 deferred income approach in accordance with paragraph [832-10-25-4(a)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4) or a grant related to income, an entity shall disclose the line items on the balance sheet and income statement that are affected by the grant and the amounts applicable to each financial statement line item in the current reporting period.

##### [832-10-50-3B](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3B)

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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 in accordance with paragraph [832-10-25-4(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4), an entity shall disclose, in the period in which the government grant is recognized on the balance sheet, the following:

1.  a
    
    The line items on the balance sheet that are affected by the grant and the amounts applicable to each financial statement line item
    
2.  b
    
    The useful life of any related depreciable or amortizable asset.

##### [832-10-50-3C](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-3C)

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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 disclose the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") of a tangible nonmonetary asset that is received as a government grant in the period in which the grant is recognized on the balance sheet, even if the cost accumulation approach is applied.

#### Significant Terms and Conditions

##### [832-10-50-4](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-4)

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An entity shall disclose information about the significant terms and conditions of transactions with a government within the scope of this Topic. Terms and conditions that might be appropriate to disclose include, but are not limited to, any of the following:

1.  a
    
    The duration or period of the agreement
    
2.  b
    
    Commitments made by both the reporting entity and the government
    
3.  c
    
    Provisions, if any, for recapture (for example, when the government can recapture amounts awarded), including the conditions under which recapture is allowed
    
4.  d
    
    Other contingencies.
    

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 disclose information about the significant terms and conditions of a government grant. Terms and conditions that might be appropriate to disclose include, but are not limited to, any of the following:

1.  a
    
    The duration or period of the grant
    
2.  b
    
    Commitments made by both the reporting entity and the government
    
3.  c
    
    Provisions, if any, for recapture (for example, when the government can recapture amounts awarded), including the conditions under which recapture is allowed
    
4.  d
    
    Other contingencies.

#### Restrictions

##### [832-10-50-5](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-5)

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If an entity omits specific information required by paragraphs

[832-10-50-1 through 50-4](https://asc.understandingaccounting.org/asc/832/10/#832-10-50-1)

because the information is legally prohibited from being disclosed, the entity shall disclose a description of the general nature of the information and indicate that the omitted disclosures are legally prohibited from being disclosed.

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## ASC 832-10-55: 55 Implementation Guidance and Illustrations

[Read section](https://asc.understandingaccounting.org/asc/832/10/#55-implementation-guidance-and-illustrations)

SEC content: no

##### [832-10-55-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-1)

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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)The Implementation Guidance and Illustrations Section is organized as follows:

1.  a
    
    Implementation guidance is provided in paragraphs
    
    [832-10-55-2 through 55-7](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-2)
    
    .
    
2.  b
    
    Illustrations are provided in paragraphs
    
    [832-10-55-8 through 55-14](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-8)
    
    .

#### Implementation Guidance

##### [832-10-55-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-2)

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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)Paragraphs

[832-10-55-3 through 55-14](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-3)

are an integral part of this Topic. These paragraphs provide additional guidance that addresses the application of the guidance on [government grants](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.").

##### [832-10-55-3](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-3)

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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)Different terms can be used to describe various types of government assistance (for example, grants, awards, or subsidies). Therefore, an entity should consider the individual facts and circumstances to determine whether assistance received from a government meets the definition of a government grant and, therefore, is within the scope of this Topic.

##### [832-10-55-4](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-4)

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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 is received in the form of a [monetary asset](https://asc.understandingaccounting.org/glossary/m/#monetary-assets "Money or a claim to receive a sum of money the amount of which is fixed or determinable without reference to future prices of specific goods or services.") or a tangible nonmonetary asset from a government. Examples of a government grant include the following:

1.  a
    
    A transfer of cash to fund future expenditures or reimburse expenditures already incurred (for example, capital expenditures, wages, training and other employee-related costs, research and development expenses, or other operating expenses)
    
2.  b
    
    A transfer of a tangible nonmonetary asset such as a long-lived asset (for example, a building, land, or equipment)
    
3.  c
    
    The proceeds of 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.") when an 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
    
4.  d
    
    A refundable tax credit that is not within the scope of Topic 740 on income taxes.

##### [832-10-55-5](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-5)

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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)The scope of the guidance in this Topic is limited to government grants and, therefore, excludes the following:

1.  a
    
    The transfer of an intangible asset or provision of a service
    
2.  b
    
    A reduction of an entity’s liabilities (for example, sales, property, payroll, or other tax abatement)
    
3.  c
    
    Government participation in the ownership of an entity
    
4.  d
    
    A contribution to a business entity from a nongovernmental source within the scope of Subtopic 958-605 on not-for-profit entities—revenue recognition
    
5.  e
    
    A transaction within the scope of Topic 606 on revenue from contracts with customers or Subtopic 610-20 on other income—gains and losses from the derecognition of nonfinancial assets.

##### [832-10-55-6](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-6)

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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)In most cases, the period over which an entity recognizes the costs or expenses related to a government grant is readily ascertainable. Thus, a government grant that is intended to reimburse specific expenses should be recognized in earnings on a systematic and rational basis over the periods in which the entity recognizes the relevant expenses. Similarly, a government grant related to a depreciable asset that is accounted for using the deferred income approach in accordance with paragraph [832-10-25-4(a)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4) should be recognized in earnings on a systematic and rational basis over the periods in which depreciation expense on that asset is recognized (in the absence of impairment or disposal).

##### [832-10-55-7](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-7)

Pending content: yes

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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)Government grants may be received as part of a package of financial or fiscal aid that contains a number of conditions. In such cases, judgment is needed to identify the conditions related to the costs that determine the periods over which the government grant will be recognized.

#### Illustrations

##### [832-10-55-8](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-8)

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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)Entity A is awarded a government grant of $5 million to assist with the cost of purchasing a building, which is the only condition attached to the grant. The government grant proceeds will be received after the purchase of the building. When the building is purchased, Entity A has incurred the related costs for which the government grant is intended to compensate and determines that the probable criteria in paragraph [832-10-25-1(a)(1) through (a)(2)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-1) have been met. The building has a useful life of 40 years.

##### [832-10-55-9](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-9)

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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)Entity A can elect to recognize the government grant as deferred income on the balance sheet using the deferred income approach in accordance with paragraph [832-10-25-4(a)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4) or reflect the government grant as an adjustment to the cost basis in determining the carrying amount of the building using the cost accumulation approach in accordance with paragraph [832-10-25-4(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-4).

##### [832-10-55-10](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-10)

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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)If Entity A elects the deferred income approach, it should recognize the government grant as deferred income. Once the building is placed into service, Entity A begins recognizing the government grant of $5 million in earnings on a systematic and rational basis over the 40-year period in proportion to the depreciation expense recognized in accordance with paragraphs [832-10-25-5](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-5) and [832-10-55-6](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-6). Entity A may elect to present the grant in earnings either separately under a general heading such as other income or deducted from the related expense (for example, depreciation). Entity A should revise the pattern of recognition if the building is disposed of or impaired.

##### [832-10-55-11](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-11)

Pending content: yes

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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)If Entity A elects the cost accumulation approach, it should reflect the government grant as an adjustment to the cost basis in determining the carrying amount of the building. Once the building is placed into service, there is no subsequent separate recognition of the government grant proceeds in earnings. The carrying amount of the building, which reflects the government grant proceeds, should be used to determine the depreciation expense or subsequent accounting in accordance with paragraph [832-10-25-7](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-7).

##### [832-10-55-12](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-12)

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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)Entity B is awarded a government grant of $2 million for qualifying expenditures associated with the research and development of a new drug. Entity B will receive cash from the government on a cost-reimbursement basis by submitting proof that it has incurred qualifying expenditures. Entity B determines that the probable criteria in paragraph [832-10-25-1(a)(1) through (a)(2)](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-1) have been met because it is probable that it will comply with the condition of the government grant (to incur qualifying expenditures) on the basis of its detailed project plan and budget and that the grant will be received.

##### [832-10-55-13](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-13)

Pending content: yes

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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)Entity B incurs the qualifying expenditures associated with the research and development of a new drug over a 2-year period and recognizes the government grant of $2 million on a systematic and rational basis over the 2-year period as those costs are incurred in accordance with paragraphs

[832-10-25-9 through 25-10](https://asc.understandingaccounting.org/asc/832/10/#832-10-25-9)

and [832-10-55-6](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-6). No government grant proceeds would be recognized in earnings until Entity B incurs the related expenses. In addition, a receivable would not be recognized on the balance sheet unless and until Entity B incurs the qualifying expenditures associated with the research and development of a new drug.

##### [832-10-55-14](https://asc.understandingaccounting.org/asc/832/10/#832-10-55-14)

Pending content: yes

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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)Entity B can elect to present the government grant proceeds either separately under a general heading such as other income in accordance with paragraph [832-10-45-3(a)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-3) or as a deduction from the related expenses in accordance with paragraph [832-10-45-3(b)](https://asc.understandingaccounting.org/asc/832/10/#832-10-45-3).

Source downloaded (UTC): 2026-09-10T01:48:38.398Z to 2026-09-10T01:48:38.398Z

Record version: sha256:f4362c53ee29f7c202f859961b7baa0ce47db29f2fed94334638541812a6d59a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 832-10-65: 65 Transition and Open Effective Date Information

[Read section](https://asc.understandingaccounting.org/asc/832/10/#65-transition-and-open-effective-date-information)

SEC content: no

##### [832-10-65-1](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:48:38.398Z to 2026-09-10T01:48:38.398Z

Record version: sha256:8d11ca4d946c116ed96b71dca8c5995bbd3aa9cfa3ecb639bb5176b696b435db

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Paragraph superseded on 07/10/2023 after the end of the transition period stated in Accounting Standards Update No. 2021-10, _Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance_.

#### Transition Related to Accounting Standards Update No. 2025-10, <em class="ph i">Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities</em>

##### [832-10-65-2](https://asc.understandingaccounting.org/asc/832/10/#832-10-65-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T01:48:38.398Z to 2026-09-10T01:48:38.398Z

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Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Accounting Standards Update No. 2025-10](https://asc.understandingaccounting.org/updates/asu-2025-10/)

2031-06-14

2028-12-16

2028-12-16

2028-12-16

2028-12-16

2029-12-16

2029-12-16

2029-12-16

2029-12-16

2029-12-16

2029-12-16

2029-12-16

2029-12-16

2029-12-16

2029-12-16

The following represents the transition and effective date information related to Accounting Standards Update No. 2025-10, _Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities_:

**Effective date and early adoption**

1.  a
    
    The pending content that links to this paragraph shall be effective for a [public business entity](https://asc.understandingaccounting.org/glossary/p/#public-business-entity "A public business entity is a business entity meeting any one of the criteria below. Neither a not-for-profit entity nor an employee benefit plan is a business entity. It is required by the U.S. Securities and Exchange Commission (SEC) to file or furnish financial statements, or does file or furnish financial statements (including voluntary filers), with the SEC (including other entities whose financial statements or financial information are required to be or are included in a filing). It is required by the Securities Exchange Act of 1934 (the Act), as amended, or rules or regulations promulgated under the Act, to file or furnish financial statements with a regulatory agency other than the SEC. It is required to file or furnish financial statements with a foreign or domestic regulatory agency in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer. It has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market. It has one or more securities that are not subject to contractual restrictions on transfer, and it is required by law, contract, or regulation to prepare U.S. GAAP financial statements (including notes) and make them publicly available on a periodic basis (for example, interim or annual periods). An entity must meet both of these conditions to meet this criterion. An entity may meet the definition of a public business entity solely because its financial statements or financial information is included in another entity's filing with the SEC. In that case, the entity is only a public business entity for purposes of financial statements that are filed or furnished with the SEC.") for annual reporting periods beginning after December 15, 2028, and interim reporting periods within those annual reporting periods.
    
2.  b
    
    For an entity other than a public business entity, the pending content that links to this paragraph shall be effective for annual reporting periods beginning after December 15, 2029, and interim reporting periods within those annual reporting periods.
    
3.  c
    
    Early adoption of the pending content that links to this paragraph is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. If an entity adopts the pending content that links to this paragraph in an interim reporting period, it shall adopt the pending content as of the beginning of the annual reporting period that includes that interim reporting period.
    

**Transition method**

1.  d
    
    An entity shall apply the pending content that links to this paragraph using one of the following transition methods:
    
    1.  1
        
        A modified prospective approach for both:
        
        1.  i
            
            [Government grants](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.") that are entered into on or after the effective date.
            
        2.  ii
            
            Government grants that are not complete as of the effective date. A government grant is complete when substantially all of the government grant proceeds have been recognized before the effective date of the pending content that links to this paragraph.
            
        
        Prior-period results shall not be restated, and there shall be no cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the year of adoption.
    2.  2
        
        A modified retrospective approach for both:
        
        1.  i
            
            Government grants that are entered into on or after the beginning of the earliest period presented.
            
        2.  ii
            
            Government grants that are not complete as of the beginning of the earliest period presented. A government grant is complete when substantially all of the government grant proceeds have been recognized before the beginning of the earliest period presented in which the pending content that links to this paragraph is adopted.
            
        
        All prior period results shall be restated for government grants that are not complete as of the beginning of the earliest period presented through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the earliest period presented.
    3.  3
        
        A retrospective approach to all government grants through a cumulative-effect adjustment to the opening balance of retained earnings as of the beginning of the earliest period presented.
        
2.  e
    
    For purposes of the transition guidance in (d)(1)(ii): A grant related to an asset that was accounted for by reflecting the grant as an adjustment to the cost basis in determining the carrying amount of the asset before the effective date is considered recognized when substantially all of the grant is reflected in the carrying amount of the asset on the balance sheet. For all other government grants, a government grant is considered recognized when substantially all of the government grant proceeds have been recognized in the income statement before the effective date of the pending content that links to this paragraph.
    
3.  f
    
    For purposes of the transition guidance in (d)(2)(ii): A grant related to an asset that was accounted for by reflecting the grant as an adjustment to the cost basis in determining the carrying amount of the asset before the beginning of the earliest period presented is considered recognized when substantially all of the grant is reflected in the carrying amount of the asset on the balance sheet. For all other government grants, a government grant is considered recognized when substantially all of the government grant proceeds have been recognized in the income statement before the beginning of the earliest period presented.
    
4.  g
    
    An entity shall apply the pending content that links to this paragraph prospectively to government grants acquired in business combinations that occur after the effective date of the pending content.
    

**Transition disclosures**

1.  h
    
    An entity that applies the pending content that links to this paragraph using a modified prospective approach in accordance with (d)(1) shall disclose the nature of and reason for the accounting change.
    
2.  i
    
    An entity that applies the pending content that links to this paragraph using a modified retrospective approach or a retrospective approach in accordance with (d)(2) or (d)(3) shall provide the transition disclosures required by paragraphs
    
    [250-10-50-1 through 50-2](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1)
    
    in the period of adoption, except for the requirements in paragraph [250-10-50-1(b)(2)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1) for the current reporting period and the requirements in paragraph [250-10-50-1(b)(4) through (c)(1)](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-1).