The COVID-19 pandemic is impacting employees, the economy, mobility and financial systems. It is likely that auditors may encounter scope limitations or complex auditing and accounting issues.

Review the message and audit implications on the CPAB's website.

A lot of attention has been paid to potential actions governments and individuals can take. However, to ensure that their firms are able to weather the crisis, boards should discuss the critical areas with their management teams. Given the evolving nature of this crisis, it is understandable that the priority will be to ensure business continuity, if not survival.

Review the blog on the NACD's website.

ESMA has issued the statement in order to promote consistent application of IFRSs in the EU and avoid divergence in practice on the application of IFRS 9 Financial Instruments in the specific context of the COVID-19 outbreak, specifically as regards the calculation of expected credit losses and related disclosure requirements. In ESMA’s view, the principles-based nature of IFRS 9 includes sufficient flexibility to faithfully reflect the specific circumstances of the COVID-19 outbreak and the associated public policy measures.

Review the statement on the ESMA website.

The European Banking Authority (EBA) also issued a related statement regarding the prudential framework and accounting implications of COVID-19. The two statements are consistent as regards financial reporting.

Review the statement on the EBA's website.

In addition, the SEC’s Division of Corporation Finance issued its current views regarding disclosure considerations and other securities law matters related to COVID-19.

Review the press release and modified exemptive order on the SEC's website.

The guidance provides a helpful list of illustrative questions that companies should ask themselves when preparing disclosure documents. The guidance also addresses insider trading concerns, as well as considerations for earnings releases. When it comes to earnings disclosure, Corp Fin touches on several issues, one of which is non-GAAP financial data.

Review the guidance on the SEC's website.

The blanket relief provides a 45-day extension for periodic filings normally required to be made by issuers, investment funds, registrants, certain regulated entities and designated rating organizations on or before June 1, 2020 and for certain other requirements outlined in the orders. Market participants need to comply with the conditions in the blanket relief to use the extension.

The CSA is implementing the relief through local blanket orders that are substantially harmonized across the country. Market participants can view these orders on CSA members’ websites and are encouraged to contact their principal regulator with any questions.

The CSA is closely monitoring the situation and will consider whether further relief or extension is necessary.

Review the press release on the CSA's website.

Appropriately navigating risk is fundamental to effective directorship. Each board member should be prepared to ask tough questions of management about their response and planning process for business operations and stakeholder management. Boards will also need to consider longer-term implications of COVID-19 on the company’s overall operations and strategy.

Key questions directors should ask: 

• Where are our most significant operational disruptions and what is our plan to overcome them?
• How is our business strategy shifting in response to COVID-19?
• Have we discussed operational impacts on executive compensation?
• What are new risks do we need to report in our upcoming SEC filings?

Review the resource center on the NACD's website.

This pulse poll shows that boards have confidence in management to support their employee populations and deal with the early stages of the crisis. Directors give their organizations high marks for their initial crisis response and collaboration with the board. They have confidence in the ability of management to handle the near-term effects of crisis and are satisfied with what they see.

Review the results on the NACD's website.

The blanket relief will provide a 45-day extension for periodic filings normally required to be made by issuers, investment funds, registrants, certain regulated entities and designated rating organizations on or before June 1, 2020. This will include financial statements, management’s discussion and analysis, management reports of fund performance, annual information forms, technical reports, and certain other filings.

The extension applies to all issuers. For those with a December 31 year-end, the extensions are as follows:

TSX-listed issuers

TSX-Venture and CSE-listed issuers

Issuers choosing to rely on this exemption and that are complying with the conditions of the relief will not need to file applications for management cease trade orders as they will not be noted in default.

The CSA expects to publish further details about the relief shortly.

Review the press release on the CSA's website.

More and more employees are working remotely by the day, and companies may eventually face the prospect of functioning with little to no personnel on-site or skeleton crews in IT and other important support functions.

Against this backdrop, both employers and employees need to take the utmost care to protect themselves as well as confidential company information.

Review the full article on the HBR's website.