The FASB is exploring adding specific guidance on accounting for government grants into US GAAP, leveraging IAS 20. While IAS 20 has “stood the test of time”, Mind the GAAP and Wipfli believe that there may be some unintended consequences if it were to be fully incorporated into GAAP, especially for not-for-profits and any entity that receives below-market interest rate loans from a government agency.
In this article by Thompson Reuters, Scott Ehrlich shares his perspectives on the Conceptual Framework, including differences between how the IASB and FASB utilize their respective guidelines.
The Bloomberg news organization interviewed Mind the GAAP’s Scott Ehrlich and others to learn about some of the financial reporting implications from Russia’s invasion of Ukraine.
Mind the GAAP and its long-time client Wipfli LLP issued a joint comment letter on the FASB’s agenda consultation invitation to comment. The firms believe that the financial community could use a respite from major standard setting activities. Instead, for the foreseeable future, we recommend that the FASB focus the majority of its time and resources on addressing relatively narrow accounting matters where there is diversity in practice or limited applicable GAAP.
In 2022, companies – for the first time – will be required to disclose how much money they get in breaks, grants, and government incentives. But there “might be very little that ends up getting disclosed by the time this gets published,” said Scott Ehrlich, president of Mind the GAAP LLC. Find out why in this article from Bloomberg Tax.