grant related to income

Broad Transactions1

1. 832-10Overall832 Government Assistance

   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.