On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. It is the third COVID-19-focused relief bill and by far the largest in terms of scope and cost.
The CARES Act includes many provisions that could significantly affect the financial reporting of companies applying US GAAP.
The Act is, in general, a current reporting period event for annual and interim reporting periods ending on or after March 27, 2020, and a nonrecognized subsequent event for annual and interim reporting periods ending before that date.
KPMG addresses the primary accounting and reporting impacts of the CARES Act provisions as we currently understand them.