{"id":1720,"date":"2026-03-11T10:15:08","date_gmt":"2026-03-11T10:15:08","guid":{"rendered":"https:\/\/pierag.com\/?p=1720"},"modified":"2026-03-11T10:15:08","modified_gmt":"2026-03-11T10:15:08","slug":"asu-2025-10-a-new-era-for-government-grant-accounting","status":"publish","type":"post","link":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/","title":{"rendered":"ASU 2025-10: A New Era for Government Grant Accounting"},"content":{"rendered":"<p>In December 2025, the Financial Accounting Standards Board (FASB) issued <strong>ASU 2025-10, Government Grants (Topic 832)<\/strong>, introducing dedicated U.S. GAAP guidance for the accounting of government grants received by business entities.<\/p>\n<p>Previously, U.S. GAAP lacked a specific standard for such grants, leading companies to rely on analogies to other guidance such as IAS 20, ASC 450, or Subtopic 958-605. This resulted in inconsistent accounting practices and reduced comparability across financial statements.<\/p>\n<p>The new update establishes a structured framework for recognizing, measuring, presenting, and disclosing government grants, improving transparency and consistency in financial reporting.<\/p>\n<h4>Key Highlights<\/h4>\n<ul>\n<li><strong>Dedicated Guidance:<\/strong> Topic 832 introduces explicit accounting guidance for government grants received by business entities under U.S. GAAP.<\/li>\n<li><strong>Clear Grant Classification:<\/strong> Grants are categorized into:<br \/>\n<strong>\u21e8 Asset-related grants:<\/strong>\u00a0linked to the purchase or construction of long-lived assets.<br \/>\n<strong>\u21e8 Income-related grants:<\/strong>\u00a0intended to compensate for expenses or losses.<\/li>\n<li><strong>Recognition Criteria:<\/strong> Grants are recognized only when it is probable that the entity will meet grant conditions and receive the grant.<\/li>\n<li><strong>Measurement:<\/strong> Grants must generally be measured at fair value at recognition, including non-monetary assets.<\/li>\n<li><strong>Accounting Approaches for Asset Grants:<br \/>\n<\/strong><strong>\u21e8 Deferred Income Approach:<\/strong> Grant recorded as deferred income and recognized over the asset\u2019s useful life.<br \/>\n<strong>\u21e8 Cost Accumulation Approach:<\/strong> Grant reduces the carrying amount of the asset, lowering depreciation over time.<\/li>\n<li><strong>Enhanced Disclosures:<\/strong> Entities must provide expanded disclosures on the nature of grants, accounting policies applied, grant terms, contingencies, financial statement impacts, and potential repayment risks.<\/li>\n<\/ul>\n<h4>Scope<\/h4>\n<p>The standard applies to business entities and excludes not-for-profit organizations and employee benefit plans, which already follow separate accounting guidance. Certain transactions such as income tax benefits, government guarantees, and below-market interest loans are also excluded.<\/p>\n<h4>Impact<\/h4>\n<p>ASU 2025-10 aligns U.S. GAAP more closely with international practices while maintaining its principles-based structure. The update is expected to improve comparability, reduce diversity in practice, and enhance the transparency of government grant reporting.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>7-10 Mins Read<\/p>\n","protected":false},"author":1,"featured_media":1721,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1720","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ASU 2025-10: A New Era for Government Grant Accounting - Pierag US<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ASU 2025-10: A New Era for Government Grant Accounting - Pierag US\" \/>\n<meta property=\"og:description\" content=\"7-10 Mins Read\" \/>\n<meta property=\"og:url\" content=\"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/\" \/>\n<meta property=\"og:site_name\" content=\"Pierag US\" \/>\n<meta property=\"article:published_time\" content=\"2026-03-11T10:15:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/pierag.com\/US\/wp-content\/uploads\/2026\/03\/Website-Article-Banner_Header-12.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1440\" \/>\n\t<meta property=\"og:image:height\" content=\"377\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Pierag_us_2026\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Pierag_us_2026\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/\"},\"author\":{\"name\":\"Pierag_us_2026\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/#\\\/schema\\\/person\\\/6ba55ddb3ff7b08ffad1c3290aec6028\"},\"headline\":\"ASU 2025-10: A New Era for Government Grant Accounting\",\"datePublished\":\"2026-03-11T10:15:08+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/\"},\"wordCount\":316,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/pierag.com\\\/US\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/Website-Article-Banner_Header-12.png\",\"articleSection\":[\"Blogs\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/\",\"url\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/\",\"name\":\"ASU 2025-10: A New Era for Government Grant Accounting - Pierag US\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/pierag.com\\\/US\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/Website-Article-Banner_Header-12.png\",\"datePublished\":\"2026-03-11T10:15:08+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/#\\\/schema\\\/person\\\/6ba55ddb3ff7b08ffad1c3290aec6028\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/#primaryimage\",\"url\":\"https:\\\/\\\/pierag.com\\\/US\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/Website-Article-Banner_Header-12.png\",\"contentUrl\":\"https:\\\/\\\/pierag.com\\\/US\\\/wp-content\\\/uploads\\\/2026\\\/03\\\/Website-Article-Banner_Header-12.png\",\"width\":1440,\"height\":377},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/asu-2025-10-a-new-era-for-government-grant-accounting\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/pierag.com\\\/US\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"ASU 2025-10: A New Era for Government Grant Accounting\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/#website\",\"url\":\"https:\\\/\\\/pierag.com\\\/US\\\/\",\"name\":\"Pierag US\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/pierag.com\\\/US\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/pierag.com\\\/US\\\/#\\\/schema\\\/person\\\/6ba55ddb3ff7b08ffad1c3290aec6028\",\"name\":\"Pierag_us_2026\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a65f4963f775da9b589214c4c4382f89fb84c2e9add17a11cdd47b6e27860463?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a65f4963f775da9b589214c4c4382f89fb84c2e9add17a11cdd47b6e27860463?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/a65f4963f775da9b589214c4c4382f89fb84c2e9add17a11cdd47b6e27860463?s=96&d=mm&r=g\",\"caption\":\"Pierag_us_2026\"},\"sameAs\":[\"https:\\\/\\\/pierag.com\\\/US\"],\"url\":\"https:\\\/\\\/pierag.com\\\/US\\\/author\\\/pierag_us_2026\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"ASU 2025-10: A New Era for Government Grant Accounting - Pierag US","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/","og_locale":"en_US","og_type":"article","og_title":"ASU 2025-10: A New Era for Government Grant Accounting - Pierag US","og_description":"7-10 Mins Read","og_url":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/","og_site_name":"Pierag US","article_published_time":"2026-03-11T10:15:08+00:00","og_image":[{"width":1440,"height":377,"url":"https:\/\/pierag.com\/US\/wp-content\/uploads\/2026\/03\/Website-Article-Banner_Header-12.png","type":"image\/png"}],"author":"Pierag_us_2026","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Pierag_us_2026","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/#article","isPartOf":{"@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/"},"author":{"name":"Pierag_us_2026","@id":"https:\/\/pierag.com\/US\/#\/schema\/person\/6ba55ddb3ff7b08ffad1c3290aec6028"},"headline":"ASU 2025-10: A New Era for Government Grant Accounting","datePublished":"2026-03-11T10:15:08+00:00","mainEntityOfPage":{"@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/"},"wordCount":316,"commentCount":0,"image":{"@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/#primaryimage"},"thumbnailUrl":"https:\/\/pierag.com\/US\/wp-content\/uploads\/2026\/03\/Website-Article-Banner_Header-12.png","articleSection":["Blogs"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/","url":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/","name":"ASU 2025-10: A New Era for Government Grant Accounting - Pierag US","isPartOf":{"@id":"https:\/\/pierag.com\/US\/#website"},"primaryImageOfPage":{"@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/#primaryimage"},"image":{"@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/#primaryimage"},"thumbnailUrl":"https:\/\/pierag.com\/US\/wp-content\/uploads\/2026\/03\/Website-Article-Banner_Header-12.png","datePublished":"2026-03-11T10:15:08+00:00","author":{"@id":"https:\/\/pierag.com\/US\/#\/schema\/person\/6ba55ddb3ff7b08ffad1c3290aec6028"},"breadcrumb":{"@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/#primaryimage","url":"https:\/\/pierag.com\/US\/wp-content\/uploads\/2026\/03\/Website-Article-Banner_Header-12.png","contentUrl":"https:\/\/pierag.com\/US\/wp-content\/uploads\/2026\/03\/Website-Article-Banner_Header-12.png","width":1440,"height":377},{"@type":"BreadcrumbList","@id":"https:\/\/pierag.com\/US\/asu-2025-10-a-new-era-for-government-grant-accounting\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/pierag.com\/US\/"},{"@type":"ListItem","position":2,"name":"ASU 2025-10: A New Era for Government Grant Accounting"}]},{"@type":"WebSite","@id":"https:\/\/pierag.com\/US\/#website","url":"https:\/\/pierag.com\/US\/","name":"Pierag US","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/pierag.com\/US\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/pierag.com\/US\/#\/schema\/person\/6ba55ddb3ff7b08ffad1c3290aec6028","name":"Pierag_us_2026","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/a65f4963f775da9b589214c4c4382f89fb84c2e9add17a11cdd47b6e27860463?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/a65f4963f775da9b589214c4c4382f89fb84c2e9add17a11cdd47b6e27860463?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/a65f4963f775da9b589214c4c4382f89fb84c2e9add17a11cdd47b6e27860463?s=96&d=mm&r=g","caption":"Pierag_us_2026"},"sameAs":["https:\/\/pierag.com\/US"],"url":"https:\/\/pierag.com\/US\/author\/pierag_us_2026\/"}]}},"_links":{"self":[{"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/posts\/1720","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/comments?post=1720"}],"version-history":[{"count":0,"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/posts\/1720\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/media\/1721"}],"wp:attachment":[{"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/media?parent=1720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/categories?post=1720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pierag.com\/US\/wp-json\/wp\/v2\/tags?post=1720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}