Comment Letter by Our Technical Accounting Team on the Proposed ASU Topic 832: Government Grants
Making recommendations on behalf of the office of the CFO, Riveron’s technical accounting advisors provide comments on an accounting standards update proposed by the FASB.
Comments on the Financial Accounting Standards Board’s Proposed Accounting Standards Update, Government Grants, Topic 832: The comment period for the FASB’s proposed accounting standards update on government grants ended on March 31, 2025. We support the Board’s efforts to establish a framework for accounting for grants under generally accepted accounting principles (GAAP) in the United States. We, however, expressed a number of significant concerns and, ultimately, stated we were not supportive of the issuance of the proposed accounting standards update. If the Board proceeds with adopting the update, we recommended substantially narrowing the optionality and addressing the lack of transparency it would permit.
For further perspective on the proposed accounting standard update and what it could mean for your organization, please contact one of our technical accounting experts:
Brian Allen | Natasha Khegay | Emily Robben
Lara Long | Patrick Garrett
About the comment letter process: Riveron (as Effectus Group, in some cases) regularly submits comment letters to the FASB on various amendments to Generally Accepted Accounting Principles (GAAP) proposed by the Board. The FASB’s comment process is designed to ensure transparency and inclusivity in the standard-setting process and Riveron’s team is a proud stakeholder in the process, monitoring all proposed changes and amendments on behalf of its clients. The FASB relies on the input of advisory professionals because we are familiar with the day-to-day accounting challenges and opportunities faced by CFOs and accounting leaders.
After thoroughly reviewing comments and making any necessary revisions, the FASB will issue the final accounting standards updates. These final standards are published in the FASB Accounting Standards Codification (ASC), which provides the official text for GAAP. The final standards will also include a detailed explanation of the changes and their effective dates.