PPP Loan Forgiveness: Accounting and Financial Reporting

Overview

This course covers accounting and financial reporting issues related to the receipt and forgiveness of loans received under the Paycheck Protection Program (PPP).

Topics include the basic rules for applying for PPP loans and loan forgiveness, the GAAP accounting and financial statement presentation for such aspects as debt issuance and debt forgiveness, presentation of eligible expenses, loan transactions, EIDL advances, and other matters. Additionally, the course delves into CPA independence challenges as well as auditor reporting issues.

Coverage includes an examination of authoritative and non-authoritative guidance as well as discussion of IRS notifications issued through the end of 2020, which present evolving guidance on key tax issues for PPP loans and EIDL advances.

Find this course for your license


License or Certification 

 

Regulator 

 

Type 

 


Objectives

After completing this course, students will be able to identify and recognize:

  • eligible expenses related to use of PPP loan proceeds
  • approaches to account for PPP loans under GAAP, including debt issuance costs, loan forgiveness, gain on debt extinguishment, and other items
  • tax treatment for PPP loan forgiveness
  • CPA independence issues with receiving agent fees from PPP lenders
  • requirements for an emphasis-of-a-matter paragraph in an auditor's report

Tax Year: 2020

Designed For:

Managers, executives, accountants, finance professionals, and other stakeholders


WebCE® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. For more information regarding WebCE administrative policies such as refunds, cancellations and concerns, please contact Support Services at 877-488-9308.

Course Information

Adding additional credit may change exam requirements.

Advanced Preparation: None