GASB addresses COVID-19-related accounting and reporting questions
Governments have adjusted to remote work environments, reconfigured facilities and operations and redeployed resources to focus on essential services during this ongoing global pandemic. In addition, some governments have received federal resources through the Coronavirus Aid, Relief, and Economic Security (CARES) Act to assist with these efforts. These unprecedented circumstances have led to questions related to the accounting and financial reporting for both expenses incurred as a result of the COVID-19 outbreak as well as relief funding received through the CARES Act. The Governmental Accounting Standards Board(GASB) has issued a technical bulletin, GASBTB 2020-1, to address several of the questions. This document provides guidance on the following:
- Revenue recognition of CARES Act funds with eligibility requirements
- Eligibility requirements in the context of resources for lost revenues
- Reporting for changes to the CARES Act subsequent to a government’s year end
- Reporting of loans received through the Paycheck Protection Program (PPP)
- Classification of certain CARES Act relief funds within enterprise funds or business type activities
- Reporting of expenses related to a government’s response to the pandemic considering the definition of extraordinary or special items
More information is available in GASB’s full technical bulletin. As you evaluate the activity and reporting within your organization, we are happy to discuss any application to specific circumstances.
For more information on this topic, or to learn how Baker Tilly public sector specialists can help, contact our team.
