The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was signed into law on 27 March 2020, provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the US economy. The assistance includes tax relief and government loans, investments and grants for entities in affected industries (e.g., health care, airlines). This publication highlights accounting and financial reporting considerations for affected companies. Because several of the Act’s provisions will require federal agencies to establish rules and procedures to implement them, affected companies and their audit committees should monitor developments so they can further evaluate the effects on financial reporting.
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