The Financial Accounting Standards Board is finalizing a new rule requiring U.S. companies to consistently report government grants—part of a broader effort to bring clarity to financial reporting in the wake of pandemic-era aid, The Wall Street Journal reports.
Approved in a narrow 4–3 vote, the rule would mandate that public and private companies disclose the value of grants received, whether in cash, forgiven loans or physical assets like equipment and land.
While many companies already follow a similar international standard, the lack of specific U.S. guidance has made it hard for investors to compare filings. The new rule aims to fix that, though critics on the board argue that it adds complexity without delivering enough insight.
The standard will take effect in 2029 for public companies and 2030 for private ones, but early adoption is allowed. For companies like GM, which sought clarification on timing and classification, the FASB says the rule will provide that. Investors, meanwhile, may finally get a clearer view into government-backed business support.