My PPC Guide on preparing Financial Statements is current as of August 2020. I don't see anything on Covid 19 disclosures. Last year I had an A&A class that said to put this note in. "In 2020, domestic and international economies face uncertainty related to the impact of the COVID-19 disease. The company may be adversely affected through decreases in management fee revenue or other difficulties providing services. Management is currently evaluating the impact it will have on future operations."
I also don't see anything to report on PPP loans. I did put in a discussion about the loan into the Income Tax note. But that is it.
Does anyone know of anything new I should know about?
This is what I said about PPP: (I am showing the income in the "Other Income and Expenses" section.
The company participated in the Small Business Administration’s “Paycheck Protection Program.” The loan was fully forgiven and is treated as a tax-free grant in accordance with AICPA and IRS guidance. The forgiven loan is not tax free on the state income tax return and for this reason the company has a $9,XXX California income tax balance due which will be expensed when paid in accordance with the cash basis income tax method of accounting. Because of the tax-free PPP loan/grant, the company had negative income on its federal income tax return and has a $24,XXX net operating loss carry forward which can be carried forward indefinitely.