The AICPA has released Technical Question and Answer (TQA) 3200.18, Borrower Accounting for a Forgivable Loan Received Under the Small Business Administration Paycheck Protection Program.
Not-for-profit entities follow the guidance for conditional contribution recognition:
initially record the cash inflow from the PPP loan as a refundable advance (liability)
reduce the refundable advance and recognize grant revenue once forgiveness criteria have been substantially met or explicitly waived
Business entities follow the guidance for gain contingency recognition:
initially record the cash inflow from the PPP loan as a liability
loan proceeds reported as a liability until conditions of release are realized or realizable, at which time revenue would be recognized and liability would be reduced