Updates on PPP, goodwill, impairment and materiality

As the forgettable and unforgettable 2020 year-end approaches, new developments in PPP loans and goodwill impairment could impact planning for calendar year ends. In this report, we discuss recent IRS releases on treatment of qualifying expenses related to a PPP loan, a recent proposal tentatively decided on by FASB related to trigger-based goodwill impairments, and our recommendation for firms to early adopt Statement on Auditing Standards (SAS) 138, Amendments to the Description of the Concept of Materiality