A nongovernmental entity may account for a Paycheck Protection Program (PPP) loan as a financial liability under certain conditions, according to new AICPA guidance for borrowers issued Wednesday, June 10.
The guidance, provided under Technical Question and Answer (TQA) 3200.18, addresses accounting for nongovernmental entities only and explains the conditions for an entity to account for PPP loans under FASB Topic 470.
The TQA includes a table to summarize key concepts of meeting the criteria for PPP eligibility and loan forgiveness.