The Paycheck Protection Program (PPP) authorizes forgivable loans to small businesses to pay their employees during the COVID-19 crisis. The loan amounts will be forgiven (i.e. the company does not need to pay the proceeds back to the government) as long as: The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and employee and compensation levels are maintained. There has been some debate about how a company that receives the proceeds from this program should recognize it in their accounting records. In other words, should it be recognized as a loan (i.e. debt) or should it be recognized as revenue since it does not need to be paid back (as long as they comply with the terms of the program)? Think about the requirements for Revenue from Contracts with Customers... do you think the proceeds a company receives would comply with ASC 606. Support your answer.