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Financial Reporting Implications of COVID-19

The COVID-19 pandemic crisis and its economic effects mean that investors and other stakeholders need high-quality financial information more than ever.

There will be issues to consider for this year’s reporting as well as in future years. Some companies may first report financial effects in interim financial statements (in accordance with IAS 34 – Interim Financial Reporting), which will likely involve the greater use of accounting estimates. However, information must be reliable and all material financial information relevant to an understanding of the financial position or performance of the company should be appropriately disclosed.

Some of the questions to be considered are:

  • how should companies assess COVID-19 events after the reporting period?
  • how should companies assess going concern?
  • what are other significant effects on accounting and reporting to evaluate?

To view the IFAC article in full, click here

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