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COVID-19 news

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 all of our news on the financial reporting impacts of COVID-19.

Related news

European Union formally adopts extended practical relief regarding COVID-19-related rent concessions

31 Aug 2021

The European Union has published a Commission Regulation endorsing 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)' issued by the IASB in March 2021.

IASB meeting in person again

11 Aug 2021

The IFRS Foundation announces that the IASB will begin to meet in person again after the summer break (observers would still only attend virtually).

FRC publishes its third Annual Enforcement Review

03 Aug 2021

The Financial Reporting Council (FRC) has published its third Annual Enforcement Review.

FRC extends application period for accounting requirements covering COVID-19 related rent concessions

09 Jun 2021

The Financial Reporting Council (FRC) has issued 'Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime - COVID-19-related rent concessions beyond 30 June 2021.

FRC publishes the results of its interim reporting thematic review

24 May 2021

The Financial Reporting Council (FRC) has published the results of its thematic review of interim reporting. The purpose of the review was to highlight areas of good practice in companies’ interim reporting and to make suggestions for improved reporting to meet the needs of stakeholders. The FRC encourages preparers to consider carefully the findings of the thematic when preparing their forthcoming interim reports.

UK adopts IFRS amendments for Covid-19-Related Rent Concessions beyond 30 June 2021

13 May 2021

The Secretary of State for Business, Energy and Industrial Strategy (BEIS) has adopted 'COVID-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)'.

Deloitte comment letter on FRED 78 'Draft amendments to FRS 102 and FRS 105 - Covid-19 related rent concessions beyond 30 June 2021'

05 May 2021

We have published our comment letter on the Financial Reporting Council's (FRC's) Financial Reporting Exposure Draft (FRED) 78 'Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime - COVID-19-related rent concessions beyond 30 June 2021'.

FRC proposes extending application period for accounting requirements covering COVID-19-related rent concessions

22 Apr 2021

The Financial Reporting Council (FRC) has issued Financial Reporting Exposure Draft (FRED) 78 'Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime - COVID-19-related rent concessions beyond 30 June 2021'.

UK Endorsement Board secretariat publishes draft UK Endorsement Criteria Assessment on the IASB's amendment to IFRS 16 and COVID 19

19 Apr 2021

The UK Endorsement Board secretariat has published a draft UK Endorsement Criteria Assessment on the International Accounting Standard Board’s (IASB's) amendment 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)'.

FRC publishes its Strategy, Plan and Budget for 2021/22

12 Apr 2021

The Financial Reporting Council (FRC) has published its Strategy, Plan and Budget for 2021/22.

EFRAG issues its final endorsement advice on the IASB's proposed amendment to IFRS 16 and COVID 19

05 Apr 2021

The European Financial Reporting Advisory Group (EFRAG) has issued its final endorsement advice letter relating to the use in the European Union (EU) of 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)' ("the Amendment).

IASB extends practical relief regarding COVID-19-related rent concessions

31 Mar 2021

The International Accounting Standards Board (IASB) has published 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)' that extends, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification.

IOSCO statement on going concern and COVID-19

25 Mar 2021

The International Organization of Securities Commissions (IOSCO) has released a statement on the need for high-quality information regarding going concern assessments and disclosures during the COVID-19 pandemic.

Financial Reporting Lab publishes its first newsletter for 2021

16 Mar 2021

The Financial Reporting Lab ("the Lab") has published its first newsletter for 2021 providing highlights of its activities in the first quarter of the year.

IASB decides to extend the practical relief regarding COVID-19-related rent concessions

10 Mar 2021

In a supplementary meeting held earlier today, the IASB considered the feedback received on the February 2021 exposure draft 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)' and decided to finalise the proposed extension of the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification by one year.

EFRAG’s final comment letter on the IASB's proposed amendment to IFRS 16 and COVID 19

04 Mar 2021

The European Financial Reporting Advisory Group (EFRAG) has issued its final comment letter on the IASB’s Exposure Draft ED/2021/2 Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed Amendments to IFRS 16).

UK Endorsement Board supports the IASB's proposed amendment to IFRS 16 and COVID 19

04 Mar 2021

The UK Endorsement Board (UKEB) has issued its final comment letter on the International Accounting Standard Board's (IASB's) Exposure Draft ED/2021/2 'Covid-19-Related Rent Concessions Beyond 30 June 2021 (Proposed Amendments to IFRS 16)'.

Deloitte supports the IASB's proposal to extend the practical relief regarding COVID-19-related rent concessions

24 Feb 2021

We have commented on IASB exposure draft ED/2021/2 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)', which was published by the IASB on 11 February 2021. The exposure draft proposes to extend the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification.

FRC publishes its draft Strategy, Plan and Budget for 2021/22

23 Feb 2021

The Financial Reporting Council (FRC) has published its draft Strategy, Plan and Budget for 2021/22. Comments are requested by 12 March 2021.

FRC Lab report on virtual and augmented reality

17 Feb 2021

A new report from the Financial Reporting Lab of the Financial Reporting Council (FRC) considers how virtual and augmented reality are and might be used to expand the scope and audience for corporate reporting.

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