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Re: shajandr post# 341275

Friday, 02/17/2023 2:09:22 PM

Friday, February 17, 2023 2:09:22 PM

Post# of 346719
Accounting for PPP Loans as Debt
Debt Model
Record initial cash inflow of PPP funds as a financial liability. Retain as a liability until either the loan is partly or fully forgiven, and the debtor has been legally released OR when loan is paid off. Companies should give consideration to accruing interest over this period as well. Upon legal release, you would reduce the liability and record a gain on extinguishment of debt for the portion that is forgiven. Extinguishment of debt can be presented in the other income (expense) section of your income statement.

GRANTED A SELF GENERATED P & L STATEMENT HOWEVER, HE IS PLAYING BY THE RULES ("record a gain on extinguishment of debt for the portion that is forgiven...can be recorded in the other income/expense section of your income statement).

I see this company eventually going cash flow positive and sustaining itself that way annually to reflect a P/E Multiple in the near future. Hills & Valleys for awhile yet then, consisitantly cash flow positive.

People keep selling down here...I will keep buying down here!

FUNN...the best is yet to come!