AICPA releases TQA on accounting for Shuttered Venue Operators Grant (SVOG) and Restaurant Revitalization Fund (RRF)

The AICPA released Technical Questions and Answers (TQA) 5270.01 Recipient Accounting for Shuttered Venue Operators Grants and Restaurant Revitalization Fund Grants Received Under the Small Business Administration COVID-19 Relief Programs which provides nonauthoritative guidance on the U.S. GAAP accounting for SVOG and RRF.

For-profit entities have three options. Currently U.S. GAAP does not addressed for-profit entities receiving government grants. The accounting options are as follows (1) Accounting Standards Codification (ASC) 958 which is contribution accounting applicable to not-for-profit entities, (2) grant accounting method under International Accounting Standards (IAS) 20, or ASC 450 – contingencies. The differences being the presentation and timing of the revenue recognized.

Not-for-profit entities must use contribution accounting under ASC 958-605.

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