The American Institute of Certified Public Accountants (AICPA) has presented a collection of questions and answers on how to reflect in accounting grants awarded by the US Small Business Administration in connection with the closure of business or within restaurants revitalization programs.
The authors of the explanations suggest that one of the models in IAS 20 Accounting for Government Grants and Disclosure of Government Assistance Section of Accounting Standards Codification 958-605 Not-for-Profit Entities – Revenue Recognition or Section 450-30 Contingencies – Gain Contingencies be used to account for these grants.
This informal guidance is intended for not-for-profit organizations (which are covered only by SVOG) or private businesses (which are covered by grants of both types). Grants provide federal budget funds to entities that were particularly affected by shutdowns due to coronavirus pandemic. They are not required to return the funding, which is non-refundable.