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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

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.

Accounting considerations in response to COVID-19 — Expected credit losses on financial assets

03 Jun 2020

COVID-19 can affect the ability of borrowers, whether corporate or individuals, to reimburse amounts owed. Individual and corporate borrowers may have a particular exposure to the economic impacts in their geography and industry sector. The impact of COVID-19 on expected credit losses (or ECL) will be particularly challenging and significant for banks and other lending businesses. However, the effect could also be significant for non-financial corporates. This is because ECL does not only apply to loans but also applies to many investments in interest bearing financial assets.

Government introduces Corporate Insolvency and Governance Bill

03 Jun 2020

The Government has introduced the Corporate Insolvency and Governance Bill in Parliament.

Accountancy Europe recommends actions for the public sector in the context of COVID-19

03 Jun 2020

Accountancy Europe has analysed short-term and long-term actions that could support the public sector in countering the pandemic's impact, among them many actions with regard to transparency and reporting.

EFRAG moves quickly on endorsement advice on IFRS 16 amendment

03 Jun 2020

The European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice for 'Covid-19-Related Rent Concessions (Amendment to IFRS 16)' not even a week after the amendment was issued by the IASB.

IOSCO statement on importance of disclosure about COVID-19

02 Jun 2020

The International Organization of Securities Commissions (IOSCO) has issued a public statement on the importance of disclosure about COVID-19 aspects to highlight financial reporting issues that should be considered by issuers in order to provide investors with relevant and reliable information in their financial reports and related disclosure documents.

IASB issues podcast on latest Board developments (May 2020)

29 May 2020

The IASB has released a podcast featuring IASB Chair, Hans Hoogervorst and Vice-Chair, Sue Lloyd discussing deliberations at (1) the May IASB meeting and (2) the Board's supplementary meeting on IFRS 16 covid-19-related rent concessions.

FCA extends reporting deadline for interims

28 May 2020

The Financial Conduct Authority (FCA) has confirmed additional relief for listed companies facing the challenges of corporate reporting during COVID-19.

Stay Tuned Online - IFRS and UK GAAP Update April 2020

28 May 2020

Stay Tuned Online is an online financial reporting update, aimed at helping finance teams keep up to speed with IFRS and UK financial reporting issues. Each update lasts about an hour.

IASB finalises amendment to IFRS 16 regarding COVID-19-related rent concessions

28 May 2020

The International Accounting Standards Board (IASB) has published 'Covid-19-Related Rent Concessions (Amendment to IFRS 16)' amending the standard to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Concurrently, the IASB also published a proposed Taxonomy Update to reflect this amendment.

HM Treasury sets minimum financial reporting requirements for 2019-20

26 May 2020

As a direct consequence of the effects of COVID-19 on government entities, HM Treasury has taken the decision to reduce the financial reporting requirements for preparers of government annual reports and accounts for 2019-20.

ICAEW and ICAS produce guidance for SME businesses on going concern and COVID-19

22 May 2020

The Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS) have prepared a guide to assist owners and directors of SME businesses in assessing going concern in light of COVID-19.

AAOIFI statement on COVID-19 accounting implications for Islamic financial institutions

22 May 2020

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has published a statement 'Accounting implications of the impact of COVID-19 pandemic'.

The latest board insights on COVID-19

20 May 2020

As we gradually emerge from lockdown, and as we look forward to the interim reporting for most companies, we thought we should bring together for you many of the areas which are important for boards to consider.

FRC updates its COVID-19 guidance for companies to include reporting of exceptional items and APMs

20 May 2020

The Financial Reporting Council (FRC) has updated its COVID-19 guidance for companies to explain how they should report exceptional items and alternative performance measures (APMs) in their reports and accounts in light of COVID-19.

ESMA statement on the implications of the COVID-19 outbreak on the half-yearly financial reports

20 May 2020

The European Securities and Markets Authority (ESMA) has issued a public statement calling for transparency on COVID-19 effects in half-yearly financial reports.

Accounting considerations related to COVID-19 — Employee benefits

18 May 2020

Entities may be considering or implementing restructuring plans to mitigate their exposures associated with unforeseen consequences of the COVID-19 pandemic. In determining how to account for these measures, entities must start by identifying the nature and characteristics of each proposed compensation plan because it may affect the timing of the recognition of the benefits provided to employees. Learn more about how to account for employee benefits in response to COVID-19 in this video.

Accounting considerations related to COVID-19 — Government assistance

18 May 2020

Certain government assistance may be offered in various ways. For example, reimbursement of expenses, reduction of income taxes, or investment tax credits. As a first step in accounting for the various measures offered by a government is determining whether they should be accounted for by applying IAS 20 'Accounting for Government Grants and Disclosure of Government Assistance' or IAS 12 'Income Taxes'.

Correction list for hyphenation

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