Several of our insurance company clients have asked for guidance on the recognition of loan proceeds under the Payroll Protection Program (PPP). The Statutory Accounting Principles Working Group has taken up several issues stemming from COVID-19 and may still take up the matter of PPP loans. As of this video’s recording, the National Association of Insurance Commissioners (NAIC) has not taken up the issue of PPP loans. Under existing guidance, the accounting for loans and extinguishment of related liabilities is governed by SSAP No. 15, Debt and Holding Company Obligations.
To read more about recognition of loan proceeds and view a table with a tabular view of three key aspects of accounting for the loan program and further segregates them by Statutory, GAAP and non-profit reporting, click here.