Client applies for over $2mil ERC refunds and receives all 3 payments during 2023. As you can imagine, there is significant interest income on these payments filed back in August 2021. How does GAAP treat that interest income?
As we go into that client for their year end, they are proposing that they accrue it ratably from Jan 1, 2022 through the date of receipts in January 2023.
I believe the interest is earned when received as the client had no idea IF they were even going to be approved. As in never anticipate gains, always anticipate losses?
Any guidance out there?
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Ellyn Sosin
SOSIN & KRIEGEL, LLP
Lake Success NY
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