Overview of key insights and resources included in report
Pandemic-related accounting and reporting
- Accounting for funds received through the Paycheck Protection Program (PPP) program, including potential forgiveness under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
- Understanding the accounting models for recognizing and measuring impairments of tangible, intangible and financial assets.
- Considering the impact of the pandemic on income taxes, revenue recognition, inventories and debt.
New accounting standards effective in 2020
- Relief from the Financial Accounting Standards Board (FASB) when accounting for the effects of reference rate reform, including the discontinuance of the London Interbank Offered Rate (LIBOR), the most widely-quoted interest rate benchmark in loan arrangements.
- Changes to accounting models for share-based awards granted to vendors, distributors and customers, including recognition and measurement of these awards.
- Streamlining of financial statement disclosures relating to fair value measurements.
On the horizon — private company standard setting developments
- The FASB continues to remain focused on reducing the cost and complexity of financial reporting for private companies through the introduction of streamlined accounting standards, where appropriate. Recent proposals include:
- Simplifying the model for considering goodwill impairment triggering events for certain private companies. Adoption is expected in the first quarter of 2021 and may impact your 2020 financial reporting.
- Streamlining the revenue recognition guidance for private company franchisors when identifying performance obligations.
2020 was a challenging year and we hope this publication serves as a helpful resource as you wrap up the financial reporting season and look ahead to 2021.