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COVID-19 resources

This year, preparers face the additional demands of producing high-quality reports against the backdrop of the effects of the COVID-19 pandemic and its economic consequences. In a continually changing and uncertain economic environment, both the FRC and ESMA highlight the importance of entity-specific and transparent disclosures regarding the impact that COVID-19 has had on the performance, position and cash flows of the entity. The FRC’s Annual Review of Corporate Reporting, its letter to Audit Committee Chairs and Finance Directors, and ESMA’s Common Enforcement Priorities provide guidance on appropriate reporting and meeting investor expectations during the pandemic and highlight other areas of regulatory scrutiny that reporters of all sizes should focus on in the coming reporting season.  Recent Lab reports also highlight investor expectations for reporting in the current environment.  In particular the FRC expects disclosures to:

  • Clearly describe the impact of COVID-19 on the company’s position and performance with quantification where possible.
  • Include relevant sensitivities or ranges of possible outcomes where judgements are made on significant estimation uncertainties
  • Quantify the historical effect of COVID-19 in narrative reporting in the strategic report. In doing so companies are ‘strongly encouraged’ not to disclose arbitrary splits of items between COVID-19 and non-COVID-19 but instead apply existing accounting policies for exceptional items.
  • Clearly articulate the impact of COVID-19 on their business and strategies using consistent assumptions to those used in other areas such as going concern, viability, impairment testing and recognition of deferred tax assets.
  • Disclose any significant judgements made in determining whether or not there is a material uncertainty in relation to going concern to be disclosed and explained.
  • Describe and explain any other significant judgements and estimates made especially with regards impairment reviews.

This page includes our resources related to COVID-19.  It includes links to:

Related resources

CIPFA/LASAAC consult on changes to the Code of Practice on Local Authority Accounting in relation to accounting for secure housing tenancies and COVID-19-related rent concessions

19 Jan 2021

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) are seeking comments on proposed changes to the Code of Practice on Local Authority Accounting in relation to accounting for secure housing tenancies and COVID-19-related rent concessions.

FRC releases podcast reflecting on the FInancial Reporting Lab's work in 2020

08 Jan 2021

The Financial Reporting Council (FRC) has released a podcast which reflects upon the work of the Financial Reporting Lab (the Lab) in 2020.

ICAEW publishes guide highlighting key considerations for the 2020/21 reporting season

18 Dec 2020

The Institute of Chartered Accountants in England and Wales (ICAEW) Financial Reporting Faculty has published a guide highlighting key areas that preparers should focus on in the forthcoming reporting season.

FRC publishes consolidated covid-19 guidance for companies and auditors.

14 Dec 2020

The Financial Reporting Council (FRC) has published consolidated COVID-19 guidance for companies and auditors. The consolidated guidance supersedes all previous FRC guidance for companies and auditors.

FRC announces thematic reviews and priority sectors for 2021/2022

11 Dec 2020

The Financial Reporting Council (FRC) has announced its corporate reporting and audit quality review programme for 2021/22 alongside its priority sectors for review.

FRC highlights importance of a challenge culture in audit firms

11 Dec 2020

The Financial Reporting Council (FRC) has undertaken a new analysis of its audit quality inspection results over the last two years to identify recurring themes requiring audit firms’ attention.

Financial Reporting Lab publishes its final newsletter for 2020

11 Dec 2020

The Financial Reporting Lab ("the Lab") has published its Q4 newsletter providing highlights of its activities in the fourth quarter of 2020.

Governance in focus — On the board agenda 2021

10 Dec 2020

As 2020 draws to a close, our annual review of board topics will stimulate your thinking and help prepare you for the year ahead.

Accounting Roundup - Closing Out 2020

10 Dec 2020

Closing Out 2020 discusses the significant corporate reporting issues relevant to 31 December 2020 annual reports, covering areas of regulatory focus identified in the FRC's annual review of corporate reporting 2019/20, issues arising from the COVID-19 pandemic and the current economic environment and developments in reporting standards and areas of investor interest.

Deloitte IFRS Masterclass 2020

07 Dec 2020

On 8-10 December 2020, Deloitte Middle East offers the IFRS Masterclass 2020 as an online event. There is no charge for attending, however, prior registration is required.

FRC publishes results of review of audit firms going concern assessments

27 Nov 2020

The Financial Reporting Council (FRC) has completed a review of the Audit of entities going concern assessments across the seven largest UK audit firms and documented its key findings.

Governance in brief - FRC issues advice on annual reports for 2020/21 reporting season

23 Nov 2020

FRC issues advice on annual reports for 2019/20 reporting season

FRC highlights continued errors in the preparation of cash flow statements

20 Nov 2020

The Financial Reporting Council (FRC) has published the results of its thematic review of corporate reporting in relation to IAS 7 ‘Statement of Cash Flows’ and the liquidity disclosure requirements in IFRS 7 ‘Financial Instruments: Disclosures’.

FRC publishes year-end advice to Audit Committee Chairs and Finance Directors in advance of the 2020/21 reporting season

14 Nov 2020

The Financial Reporting Council (FRC) has published a letter to Audit Committee Chairs and Finance Directors, in advance of the 2020/21 reporting season, setting out its expectations for preparers of reports and accounts for the coming year.

FRC publishes Developments in Audit 2020 report

14 Nov 2020

The Financial Reporting Council (FRC) has published their annual developments in audit report 2020.

Need to know — Accounting considerations related to the coronavirus 2019 disease

11 Nov 2020

This Need to know highlights some of the key issues to be considered by entities in preparing their financial statements applying IFRS Standards.

FCA Policy Statement delays ESEF implementation and extends publication deadlines for listed companies

10 Nov 2020

The Financial Conduct Authority (FCA) has published Policy Statement (PS) 20/14. The Policy Statement sets out the FCA’s decision to delay by one year mandatory requirements related to the European Single Electronic Format (ESEF). The Policy Statement also provides an update on extending deadlines for the publication of financial statements by listed companies in response to COVID-19.

IPSASB delays effective dates

09 Nov 2020

The IPSASB has published 'Covid-19: Deferral of Effective Dates' delaying the effective dates of recently published standards and amendments by one year to 1 January 2023. The amendment is a response to the global COVID-19 pandemic and intended to provide stakeholders with additional implementation time.

Financial Reporting Lab publishes third newsletter of 2020

02 Nov 2020

The Financial Reporting Lab ("the Lab") has published its third newsletter of 2020.

Accounting Roundup-October 2020

29 Oct 2020

This accounting roundup, covering the period July 2020 through to September 2020, pulls together the headlines for all the latest developments in accounting, providing links to a wealth of further information and resources.

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