Page 2 FASB In Focus users with more information about existing government assistance agreements to help them better assess the nature of the assistance. „„ Specifically, the disclosures would increase transparency and require disclosures about: How Do the Provisions Compare with International Financial Reporting Standards (IFRS)? What Kind of Feedback Is the Board Seeking from Stakeholders? Because there is a lack of GAAP guidance for government assistance, some U.S. issuers are turning to IAS 20 for guidance on recognition, measurement, and disclosures. Similar to IAS 20, the proposal contains guidance for disclosures on government assistance. However, IAS 20 also provides guidance on recognition and measurement of government grants, but not other forms of government assistance. The Board invites individuals and organizations to comment on all matters in this proposed ASU. The 90-day comment period ends on February 10, 2016. 1. The types of arrangements 2. The accounting for government assistance, and 3. Their effect on the business organization’s financial statements. The disclosures in the proposed guidance include: „„ Information about the nature of the assistance, significant categories, and the method applied to account for the government assistance „„ Line items on the balance sheet and income statement that are affected by government assistance and applicable amounts „„ Significant terms and conditions of the agreement including commitments and contingencies, and The amount of government assistance received but not recognized directly in any financial statement line item (unless impractical). The scope of IAS 20 does not include government assistance that is provided for a business in the form of benefits that are available in determining taxable profit or loss, or that is determined based on income tax liability.

The disclosures required in the proposed guidance are generally consistent with those required by IFRS. T he Board invites individuals and organizations to comment by February 10, 2016. When Would the Amendments Be Effective? The effective date will be determined by the Board after considering stakeholders’ feedback on the proposed Update. The amendments would be applied to all agreements existing at the effective date and those entered into after the effective date. Retrospective application would be permitted. For more information about the project, please visit the FASB’s website at www.fasb.org. © Copyright 2015 by Financial Accounting Foundation, Norwalk, CT.

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