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

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.

ICAEW publishes guide to IFRS 9 and COVID-19

22 Apr, 2020

The Institute of Chartered Accountants in England and Wales (ICAEW) Financial Services Faculty has published a guide to help banks and their auditors deal with the effects of coronavirus on financial reporting under IFRS 9 'Financial Instruments'.

Accounting considerations related to COVID-19 — Events after the reporting period

20 Apr, 2020

This video discusses the effect of COVID-19 on accounting after the reporting period. Since the 31st of December 2019, the events around COVID-19 have developed rapidly. In a global marketplace that is currently extremely volatile and in which major developments are occurring daily, it may be challenging for an entity to determine if an event after the end of the reporting period affects the recognition and measurement of assets and liabilities in the financial statements. When new information is obtained after the end of the reporting period, entities need to carefully assess if that information reveals a condition that existed before the end of the reporting period.

FRC issues Q&A on company filing, AGMS and other general meetings during COVID-19

17 Apr, 2020

The Financial Reporting Council (FRC) has issued a set of answers to commonly asked questions on the challenges companies may experience in complying with statutory obligations to hold meetings and to file documentation on the Companies Register during the COVID-19 crisis.

IASB holds meeting dedicated to COVID-19 issues

17 Apr, 2020

In advance of its regular meeting next week, the IASB held a supplementary IASB meeting today to consider COVID-19-related matters: the Board's timelines in view of the COVID-19 pandemic and accounting for COVID-19-related rent concessions.

ESMA expands Q&A document on the implementation of its APM guidance

17 Apr, 2020

In June 2015, the European Securities and Markets Authority (ESMA) published its final Guidelines on Alternative Performance Measures (APMs) for listed issuers that became effective in July 2016. Since then, ESMA has published several questions and answers on the guidelines to promote common supervisory approaches and practices in the implementation of them. A new question has now been added to the document on the use of APMs in the context of COVID-19.

DPOC discusses shortened comment periods for exposure drafts the IASB might decide to publish

16 Apr, 2020

The Due Process Oversight Committee (DPOC) of the IFRS Foundation held a conference call today to discuss shortened comment letter periods for two exposure drafts the IASB might decide tomorrow to publish in the context of the COVID-19 pandemic.

Agenda and pre-meeting summaries available for the April 2020 IASB supplementary meeting

14 Apr, 2020

The IASB is holding a supplementary IASB meeting to consider COVID-19-related matters on Friday 17 April 2020.

IASB publishes COVID-19 guidance on IFRS 16, will discuss COVID-19 implications in supplementary meeting

11 Apr, 2020

The International Accounting Standards Board (IASB) has published a document responding to questions regarding the application of IFRS 16 'Leases' during the period of enhanced economic uncertainty arising from the COVID-19 pandemic. In a supplementary meeting, the IASB will discuss the matter further and will also consider effective dates, consultations periods and publication dates in general.

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