10 Frequently asked questions: Bookkeeping to have PPP Financing and Forgiveness
Financial statement Accounting and you can Revealing Requirements
Under the Paycheck Safety System (PPP), government entities authorizes around $349 million inside forgivable fund so you’re able to smaller businesses inside COVID-19 crisis. Smaller businesses get money, and many have concerns on the best way to be the cause of the money, expenditures, and forgiveness within accounting facts.
Currently, zero advice might have been issued in order to particularly target this new statement of finance accounting and you will revealing standards to possess an application for instance the PPP. There is certainly some general information for the accounting conditions issued by new Monetary Accounting Criteria Panel which might be put on that it problem. Discover more lower than away from faq’s we listen to from your clients:
How can i record the newest continues gotten away from PPP? The brand new court sort of a PPP loan are an obligations appliance. Because of this, the new continues will likely be showed as loans into the harmony layer, following the Bookkeeping Conditions Codification (ASC) 470.
Is the PPP financing submitted as short-term otherwise enough time-term loans? Oftentimes, the bill are going to be addressed once the current debt as opposed to long-name. Read more
