Companies Back New Government Accounting Aid Rules, With Tweaks

Big Four accounting firms and major corporations are throwing their support behind a US accounting rulemaker plan to leverage international guidance so companies can show investors how government grants, credits, and special programs boost their bottom lines.

No part of the rulebook for US accounting requires companies to tally how these breaks and cash grants swell their profits. Investors, analysts, and government watchdogs have long complained about this hole in corporate reporting but complaints grew louder during the coronavirus pandemic, when an influx of government aid bolstered company coffers. The Financial Accounting Standards Board asked the public in June if ...