COVID-19 resources

Many companies continue to face uncertainty about their prospects as a result of the on-going impact of the COVID-19 pandemic which continues to present a number of reporting challenges.  Although the FRC has highlighted that reporting in the face of the pandemic has not declined, it is still vital that companies continue to provide timely and high-quality reporting which reflects the ongoing uncertainties they face and their response to those uncertainties.

For many companies, their focus will have moved from the urgency of short-term survival to the development of longer-term resilience in the wake of COVID-19.  ESMA in its Common Enforcement Priorities, calls for companies to carefully assess the longer-term impacts of COVID-19 on their financial performance, position and cash flows.  It reiterates key messages from its previous Common Enforcement Priorities and highlights that it will continue to focus on how companies have considered the effects of COVID-19 in their reporting in particular on going concern assumptions, significant judgements, estimation uncertainty, presentation of financial statements and impairment of assets.  ESMA also reminds companies of its expectations with regards to disclosure in areas such as supplier finance arrangements and government assistance, the recognition of deferred tax assets, non-financial reporting and presentation of Alternative Performance Measures (APMs) in a COVID-19 environment.  

Like ESMA, in its upcoming monitoring of annual reports in 2021/22 the FRC will continue to focus on how companies are disclosing the financial reporting impacts of COVID-19.  In particular it will focus on the disclosure of judgements and estimation uncertainties arising from the continuing effects of the COVID-19 pandemic, particularly regarding matters such as going concern and liquidity.

In its Annual Review of Corporate Reporting it reminds companies of a number of key messages from its COVID-19 thematic review that 2021 reporters should continue to have regard to this reporting season.  Previous messages contained within other guidance such as the FRC’s Company Guidance COVID-19 and FRC Lab reports will also be relevant in highlighting FRC and investor expectations for reporting in the current uncertain environment.

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

Related resources

ESMA statement on supervisory coordination on accounting for COVID-19-related rent concessions

21 Jul, 2020

The European Securities and Markets Authority (ESMA) has issued a public statement recommending coordination of supervisory action with regards to issuers’ accounting for COVID-19-related rent concessions.

Podcast on the public sector and the coronacrisis (part 2)

21 Jul, 2020

Accountancy Europe has released a second podcast on the wider repercussions of COVID-19 for the public sector. The new podcasts discusses the long-term actions required to help overcome the effects of COVID-19.

Governance in focus — On the board agenda – half year 2020

15 Jul, 2020

This half year update is a timely summary of some important areas for board focus as we enter the second half of 2020 and start to emerge from the unprecedented lockdown of our lives and our economy.

IASB defers effective date of IAS 1 amendments

15 Jul, 2020

The International Accounting Standards Board (IASB) has published 'Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Amendment to IAS 1)' deferring the effective date of the January 2020 amendments to IAS 1 by one year.

IPSASB proposes to delay effective dates

15 Jul, 2020

The IPSASB has published Exposure Draft 73 'Covid-19: Deferral of Effective Dates' proposing to delay the effective dates of recently published standards and amendments by one year to 1 January 2023. The ED is a response to the global COVID-19 pandemic and intended to provide stakeholders with additional implementation time.

Accounting considerations in response to COVID-19 — Leases

14 Jul, 2020

COVID-19 has led many lessors to provide relief to lessees by deferring or relieving them of amounts that would otherwise be payable. In some cases this is through negotiation between the parties, but can also be as a consequence of a government encouraging or requiring that the relief be provided. IFRS 16 requires lessees to assess whether changes to lease contracts are lease modifications as this term is defined in the Standard and, if so, the lessee must remeasure the lease liability using a revised discount rate. This video explains the amendments made in response to the current economic climate.

Financial Reporting Lab calls for participants in a new Lab project: reporting on stakeholders and Section 172 disclosures

13 Jul, 2020

The Financial Reporting Lab has called on investors and companies to participate in a new project on corporate disclosures on stakeholders, including statements in response to Section 172 of the Companies Act.

FRC publishes the results of its review of audit firms' going concern policies and procedures

08 Jul, 2020

The Financial Reporting Council (FRC) has published the results of its review of the seven largest UK audit firms' policies and procedures in relation to going concern, in light of COVID-19.

2020 update on half-yearly financial reporting

02 Jul, 2020

The 2020 version of Deloitte's guide to half-yearly financial reporting provides an invaluable source of guidance for those companies preparing half-yearly financial reports in 2020.

IAASB guidance on accounting estimates

29 Jun, 2020

The International Auditing and Assurance Standards Board (IAASB) has released COVID-19 pandemic-related guidance on auditing accounting estimates and related disclosures.

Accounting considerations in response to COVID 19 — Profit or loss statements

24 Jun, 2020

In this webcast, we look at the presentation of COVID-19-related items in the statement of profit or loss. The impact of COVID-19 may give rise to material expense or income items for many entities, for example, restructuring provisions and impairment losses related to non-financial assets. Entities may identify and quantify such discrete items, they should be disclosed separately either in the statement of profit or loss and other comprehensive income or in the notes to the financial statements, with appropriate explanation of those amounts. Watch the video series to learn more.

Accounting considerations in response to COVID-19 — Going concern

22 Jun, 2020

Financial statements are prepared on a going concern basis unless management intends either to liquidate the entity or to cease trading, or has no realistic alternative but to do so. The effects from COVID-19 are disrupting operations of many businesses. Watch this video to learn more.

Accounting considerations in response to COVID-19 — IAS 34 — Interim financial reporting

22 Jun, 2020

An interim financial report prepared applying IAS 34 is meant to provide an update on the latest complete set of annual financial statements with a focus on new activities, events and circumstances. An entity applies the same accounting policies in its interim report as those applied in its annual financial statements except for accounting policy changes. This video explains items to consider when preparing interim financial reports applying IAS 34.

Need to know — COVID-19 and financial reporting under IFRS Standards

19 Jun, 2020

This Need to know is addressed to high level executives and audit committees and takes a strategic look at what are likely to be the most common hot topics for the upcoming financial reports, whether annual or interim.

FRC Lab reports on current questions investors seek answers on

15 Jun, 2020

Two new reports from the Financial Reporting Lab of the Financial Reporting Council (FRC) provide practical guidance to companies in areas of reporting that investors have highlighted as being most critical in these times of unparalleled economic uncertainty.

London Stock Exchange announces temporary extension for publication of half-yearly reports for AIM companies

12 Jun, 2020

In response to the COVID-19 pandemic, the London Stock Exchange has announced that AIM companies can have an additional month to finalise their half-yearly reports

PRA publishes guidance on the application of IFRS 9 for payment deferrals

12 Jun, 2020

The Prudential Regulation Authority (PRA) has sent a letter to chief executive officers of UK banks providing guidance on how to account for the ending of initial payment deferrals offered due to COVID-19.

EFRAG final comment letter on deferral of IAS 1 effective date ED

05 Jun, 2020

The European Financial Reporting Advisory Group (EFRAG) has published its final comment letter on the IASB exposure draft ED/2020/3 'Classification of Liabilities as Current or Non-current - Deferral of Effective Date (Proposed amendment to IAS 1)'.

Need to know — IASB finalises amendment to IFRS 16 'Leases' regarding COVID-19-related rent concessions

04 Jun, 2020

This Need to know addresses the amendment to IFRS 16 'Leases' published by the IASB in May 2020, titled 'Covid-19-Related Rent Concessions'. This is an update of our earlier Need to know on the Exposure Draft.

ICAEW, ICAS and PRAG publish joint COVID-19 guidance on pension scheme financial reports and audit

04 Jun, 2020

The Institute of Chartered Accountants in England and Wales (ICAEW), the Institute of Chartered Accountants of Scotland (ICAS) and the Pensions Research Accountants Group (PRAG) have jointly published guidance on the implications of COVID-19 on pension scheme financial reports and audit.

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