In response to the COVID‐19 pandemic, The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020 which included the Paycheck Protection Program (PPP) loans.
In this whitepaper, the CICPAC Thought Leadership Committee provides an overview of the four options that can be used to account for the PPP Loans. The committee has also provided several examples of financial statement presentation, disclosures to be included in the financial statements, and sample wording to be included in the management representation letter. The final section of the whitepaper provides some additional things to consider when accounting for the PPP loans.
A full copy of the comprehensive guide can be downloaded here.
