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U.S. Tax Break Accounting Plan Draws Inspiration from Overseas

May 5, 2022, 5:46 PM

U.S. accounting rulemakers will issue in the coming weeks an early-stage plan asking how companies should report tax incentives and government grants in their financial statements.

For multinational companies and their auditors, the plan will look familiar. That’s because the board will issue the entirety of IAS 20, the international accounting rules for recognizing and measuring incentives and breaks, and ask whether all or some of it could work in the U.S, Financial Accounting Standards Board Technical Director Hillary Salo said Thursday.

“People were interested in a project on the recognition and measurement of government grants, but not ...