The FASB has issued ASU 2021-10, Government Assistance (Topic 832):  Disclosures by Business Entities about Government Assistance. Current GAAP has no authoritative guidance on the accounting for government grants, like Paycheck Protection Program loans and Employee Retention Credits, received by business entities.  As a result, many entities chose to apply a grant or contribution model, like Subtopic 958-605, Not-For-Profit Entities—Revenue Recognition by analogy.  ASU 2021-10 establishes required disclosures for business entities that account for a transaction with a government by applying a grant or contribution accounting model by analogy.  Required disclosures include the nature of the assistance received and the related accounting policy adopted, the impact of the assistance on the specific line of an entity’s financial statements and significant terms and conditions associated with the assistance.

The full text of ASU 2021-10 is available here.

 

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