This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

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

Podcast on corporate reporting and the coronavirus crisis

18 May 2020

Accountancy Europe has released a podcast exploring the repercussions of the corona crisis for corporate reporting and particularly focusing on banks. The podcast also discusses how IFRS 9 can incorporate the irregularities of the current situation and outlines other accommodations that have been made for both companies and banks to report on this period.

IASB votes to finalise IFRS 16 amendment

15 May 2020

In a supplementary meeting today, the IASB considered the feedback it received on its 24 April exposure draft 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)' that contained a proposed amendment that would provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. The 14-day comment letter period closed on 8 May 2020 and the Board received 110 comment letters (including late submissions).

FRC updates its COVID-19 guidance for companies to include going concern considerations for interim reporters

14 May 2020

The Financial Reporting Council (FRC) has updated its COVID-19 guidance for companies to include considerations for those preparing interim reports.

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

08 May 2020

The European Financial Reporting Advisory Group (EFRAG) has published a draft comment letter on the IASB exposure draft ED/2020/3 '3 Classification of Liabilities — Deferral of Effective Date (Proposed amendment to IAS 1)'.

Deloitte comment letter on the IASB's proposed amendments to IFRS 16 related to COVID-19

08 May 2020

We have commented on IASB Exposure Draft (ED) 2020/2 'Covid-19-Related Rent Concessions' which was published by the IASB on 24 April 2020. The ED contains a proposed amendment that would provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification.

Collections of COVID-19 resources

08 May 2020

Global responses to the coronavirus disease 2019 (COVID-19) outbreak continue to rapidly evolve. Numerous publications and announcements of developments have sprung up around the world. Since it has become more and more difficult to follow all of them, we have put together a meta-collection of collections that we found helpful and worth browsing.

IASB announces supplementary meeting

07 May 2020

On 15 May, the IASB will hold a supplementary meeting on COVID-19-related matters. The meeting will be held by conference call and is expected to last one hour (10:00-11:00 hrs BST).

Need to know — IASB proposes to defer effective date for 'Classification of Liabilities as Current or Non-current'

06 May 2020

This publication discusses proposed amendments to IAS 1 'Presentation of Financial Statements' set out in IASB Exposure Draft ED/2020/3 'Classification of Liabilities as Current or Non-current—Deferral of Effective Date'.

IASB announces meeting updates in view of the COVID-19 pandemic

05 May 2020

The International Accounting Standards Board (IASB) announces that the June CMAC/GPF meeting has been postponed and the July ASAF meeting has been cancelled.

Financial Reporting Lab publishes first newsletter of 2020

04 May 2020

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

ICAEW publishes a two-part guide on COVID-19 considerations for auditing going concern and reporting of material uncertainties

04 May 2020

The Institute of Chartered Accountants in England and Wales (ICAEW) Financial Reporting Faculty has published a two part guide for auditors covering COVID-19 considerations for auditing going concern, and how to report when a material uncertainty relating to going concern exists. The guide builds upon the Financial Reporting Council’s (FRC’s) March 2020 Bulletin for auditors which set out considerations for auditors in relation to COVID-19.

IASB proposes to defer effective date of IAS 1 amendments

04 May 2020

The International Accounting Standards Board (IASB) has published an exposure draft 'Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Proposed amendment to IAS 1)' proposing to defer the effective date of the January 2020 amendments to IAS 1 by one year. Comments are requested by 3 June 2020.

EFRAG draft comment letter on rent concessions ED

01 May 2020

The European Financial Reporting Advisory Group (EFRAG) has published a draft comment letter on the IASB exposure draft ED/2020/2 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)'.

Accounting Roundup - April 2020

30 Apr 2020

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

IASB issues podcast on latest Board developments (April 2020)

30 Apr 2020

The IASB has released a podcast featuring IASB Chair, Hans Hoogervorst and Vice-Chair, Sue Lloyd discussing the deliberations at (1) the April IASB meeting and (2) the Board's supplementary meeting on COVID-19-related matters.

Accounting considerations related to COVID-19 — IAS 36 — Impairment of assets

29 Apr 2020

Entities will need to assess whether the impact of COVID-19 has potentially led to the impairment of assets that are covered by IAS 36 'Impairment of Assets'. The financial performance of an entity, including estimates of future cash flows and earnings, may be significantly affected by the direct or indirect impacts of recent and ongoing events relating to the COVID-19 pandemic.

Accounting considerations related to COVID-19 — Covenants

29 Apr 2020

This video looks at matters related to potential or actual breach of covenants. Unstable trading conditions, forced closure of businesses and shortages of cash flows in the affected regions may increase the risk that entities breach financial covenants. Entities should consider how the breach of a loan covenant may affect the timing of repayment of the related loan and other liabilities.

Accounting considerations related to COVID-19 — IAS 37 and onerous contracts provisions

28 Apr 2020

This video discusses onerous contracts provisions related to COVID-19. At the inception of an executory contract, both parties to the contract expect to receive benefits that are equal to or greater than the costs to be incurred under the contract. Because of the impacts of COVID-19, unavoidable costs of meeting the obligations under the contract may exceed the benefits expected to be received, resulting in an onerous contract. IAS 37 'Provisions, Contingent Liabilities, and Contingent Assets' requires recognition of a provision in respect of an onerous contract.

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

24 Apr 2020

This publication addresses the proposed amendments to IFRS 16 'Leases' set out in Exposure Draft ED/2020/2 'COVID-19-Related Rent Concessions (Proposed amendments to IFRS 16)' published by the IASB in April 2020.

IASB publishes proposed amendment regarding COVID-19-related rent concessions

24 Apr 2020

The International Accounting Standards Board (IASB) has published an exposure draft 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)' that contains a proposed amendment that would provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Comments are requested by 8 May 2020.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.