GASB Proposes Application Guidance on Cares Act and COVID-19 Assistance

The Governmental Accounting Standards Board (GASB) has released the proposed staff Technical Bulletin, Accounting and Financial Reporting Issues Related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020 and Coronavirus Diseases. The GASB is proposing the technical guidance as part of its continuing efforts to assist state and local governments during the COVID-19 pandemic.

Application Guidance

The proposal contains application guidance related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020 and certain outflows incurred in response to the coronavirus. The Technical Bulletin, if adopted in its present form, addresses questions raised with the GASB by its stakeholders.

The Exposure Draft of the proposal clarifies the application of existing recognition requirements to resources received from certain programs established by the CARES Act. It also clarifies how existing presentation requirements apply to certain inflows of CARES Act resources and to the unplanned and additional outflows of resources incurred in response to the coronavirus disease.

Because the GASB is working to issue this guidance as quickly as practicable, the comment deadline for the Exposure Draft is June 25, 2020. The GASB is scheduled to review stakeholder feedback and consider clearing a final Technical Bulletin on June 30.

COVID-19 (Coronavirus) Resources for Tax & Accounting Professionals

Wolters Kluwer is right by your side to help you stay up to date with tax and compliance changes and support your ability to work remotely. Please visit our visit our webpage for more resources.

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