Insights and Resources
Additional updates to Coronavirus: Financial reporting considerations
FINANCIAL REPORTING INSIGHTS |
Authored by RSM US LLP
We have updated our white paper, Coronavirus: Financial reporting considerations, to include discussion of the following:
- To the extent an insured depository institution, bank holding company or any affiliate thereof deferred its adoption of Accounting Standards Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, based on the optional temporary relief provided in the CARES Act, but would like to adopt ASU 2016-13 prior to the extended expiration date for that relief provided in the Consolidated Appropriations Act, 2021, the approaches that may be used to do so
- The audits of Paycheck Protection Program (PPP) loans that may be performed by the Small Business Administration (SBA) up to six years after the loan is forgiven (depending on the amount of the loan and the requirements being audited), and as a result, the need to consider the disclosure and recognition guidance in Topic 450, “Contingencies,” of the Accounting Standards Codification (ASC) during the period of time the PPP loan is subject to audit by the SBA
- The effects of PPP loan forgiveness on the cash flow statement when ASC 470, “Debt” is the accounting policy applied to the loan
We have also updated our white paper, Borrower’s accounting for Paycheck Protection Program loans, for the PPP-related matters listed.
Given the broad spectrum of financial reporting issues that could arise due to the coronavirus pandemic, we encourage the review of our coronavirus white paper in conjunction with the year-end financial reporting and audit processes that are or will be occurring for many entities now and in the coming months.
Call us at +1 213.873.1700, email us at firstname.lastname@example.org or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by RSM US LLP and originally appeared on 2021-01-28.
2020 RSM US LLP. All rights reserved.
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Vasquez & Company LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Vasquez & Company LLP can assist you, please call +1 213.873.1700.
Subscribe to receive important updates from our Insights and Resources.