Another structural gap: IFRS has a comprehensive recognition standard (IAS 20); US GAAP does not. US business entities analogize (often to IAS 20 itself, or to grant/contribution guidance) and disclose government assistance under ASC 832.
| Area | US GAAP | IFRS (IAS 20) |
|---|---|---|
| Recognition standard | None for business entities — analogize; ASC 832 requires disclosure | IAS 20 — recognize in P&L over the periods matching the related costs |
| Practice | Diverse (income vs cost-reduction) | Prescribed income approach |
| Asset-related grants | Varies | Deferred income or netted against the asset’s carrying amount |
Because US GAAP has no recognition model, practice varies and is driven by the analogy chosen — IAS 20 prescribes the approach.
An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult IAS 20 / ASC 832 directly.