![]() While US GAAP does not speak specifically to the accounting for PPP loan forgiveness, we believe that three standards, detailed below in section titled “The guidance related to loan forgiveness” provide a basis for a reasonable accounting treatment by analogy. Our conclusion on accounting for government assistance in the form of loan forgiveness: Employee and compensation levels are maintained.The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made and.Generally, the loan amounts will be forgiven as long as: ![]() ![]() ![]() Under the Paycheck Protection Program (“PPP”), as part of the CARES Act, the federal government authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. ![]()
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