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.