Hot Topic | May 2020
Accounting and reporting impacts of the CARES Act
Updated: 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.
Applicability
Relevant dates
- CARES Act was signed into law on March 27, 2020
- Effective immediately
Key impacts
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.
Report contents
- Background
- Applicability
- Key impacts
- Income taxes
- Payroll taxes
- Government grants and payments for goods and services
- Debt and equity interests issued
- Deferral of CECL and suspension of TDR guidance
- Mortgage relief
- Lease eviction moratorium
- Subsequent events and going concern
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