Get the accounting guidance you need for PPP and other government grants and loans

You’ve received government assistance from programs such as the Paycheck Protection Program (PPP) or the CARES Act – now you need to account for it. 

Get ahead of reporting requirements with simple, clear accounting guidance for PPP loans and more.

Crowe CARES Act Reporting Tool 

Track, manage, consolidate, and report on CARES Act funds in one secure platform. 

Understand the nuts and bolts of assistance

Without explicit U.S. GAAP guidance on how for-profit entities should account for government assistance, businesses are left to determine accounting policy based on relevant facts and circumstances.

You’ll need to consider assistance type – for example, loan, grant, contribution, or tax relief – as well as rules for forgiveness, conditions, and contingencies.

Only then can you begin to identify the appropriate accounting treatment for your PPP loan or government grant. 

It's also important to know how each accounting policy affects your organization’s financial statements, covenants, and regulatory requirements.

 

 

Consider the best ways to account for your PPP loan

U.S. GAAP guidance can be clear in some places – and confusing in many others. To figure out the right accounting policies for your loan or grant, you’ll need to think long and hard about the form and substance of the assistance. 

First, consider if there is explicit guidance (ASC 740 for income tax credit), if the assistance represents an exchange transaction (ASC 606), or if accounting policy exists for similar forms of assistance. 

For assistance not accounted for under these options, you’ll need to explore how well existing models align with the form and substance of your grant, loan, or tax relief. Some models that could apply:

  • ASC 470/ASC 405-20 (accounting for financial liabilities)

  • IAS 20 (accounting for government assistance, including forgivable loans)

  • ASC 450-30 (accounting for gain contingencies)

  • ASC 958-605 (accounting for contributions)


We can help you find a clear path forward

Whether you need help with a technical accounting memo or auditing support, our accounting advisory services can help. 
Accounting advisory
To help structure your options, we’ve developed a framework that walks you through key accounting considerations. 
Accounting advisory
Financial statement and disclosure preparation
We can prepare financial statements and disclosures based on the most applicable accounting treatment. 
Financial statement and disclosure preparation
Policy and control development and implementation
We can also develop and implement policies, procedures, and controls to account for government assistance and stand up to audits. 
Policy and control development and implementation

On the forefront of understanding

Crowe professionals across service lines have deep knowledge of various government assistance programs, including recent COVID-19 relief programs such as the CARES Act, PPP, Main Street Lending Program, and others. Crowe has been on the forefront of understanding the accounting framework to be applied to these and other government assistance programs.

Here to help with quick, effective solutions, on-site or remote. 

We’ve talked with regulators and industry leaders to understand the most important interpretive issues. Trust our responsive, knowledgeable specialists to help you – without the need to work on-site or interrupt your business. You’ll get the guidance you need to account for government assistance with minimal inconvenience.