PPP Loans and Forgiveness - Accounting and Financial Reporting Issues

Exam Questions: 10
Course Level: Basic
Pages: 102 | Content: 94, Supplemental: 8
NASBA Area of Study: Accounting
Not Acceptable for: Enrolled Agents
Version: 7960E

The objective of this course is to inform the reader of the accounting and financial reporting issues related to the receipt and forgiveness of loans received under the Paycheck Protection Program (PPP), including first- and second-draw loans. PLEASE NOTE: Not accepted for Enrolled Agents. All course material provided. No prerequisites. Course level: Basic.

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Course Information

Table of Contents
  • PPP Loans and Forgiveness: Accounting and Financial Reporting Issues
  • To identify some of the eligible expenses related to use of PPP loan proceeds
  • To recognize approaches to account for PPP loans under GAAP
  • To recall how to present debt issuance costs on the financial statements
  • To recognize how to account for PPP loan forgiveness
  • To recognize how to present a gain on extinguishment on the statement of cash flows
  • To identify how to treat the forgiveness of a PPP loan for tax purposes
  • To recognize how the IAS 20 grant approach is used to account for its PPP loan
  • To recognize actions that impact a CPA's independence in a PPP loan assistance engagement
  • To recall some of the rules pertaining to a CPA receiving an agent fee from a PPP loan lender
  • To identify whether an emphasis-of-matter paragraph may be used in an accountant's report when there is a forgiveness of a PPP loan

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