With many borrowers unsure of how to account for PPP loans, subject matter experts review one of the possible models available – the conditional contribution model. In this webcast, Chris Cole, Associate Director – Professional Development & Not-for-Profit Section, and Kari Hipsak, CPA, CGMA, Senior Manager – Firm Services walk through key considerations of this model, including:
Sample journal entries for PPP loan funding and PPP loan forgiveness
Requirements for timing of revenue recognition:
Barriers to entitlement
Right of return to provider is grant/contract provisions are not met
A look at disclosure information required for PPP loans, as any liability or debt instrument using the model
Reference information from FASB ASC 958-605