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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

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The Financial Reporting Council (FRC) has released a podcast which reflects upon the work of the Financial Reporting Lab (the Lab) in 2020.

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FRC publishes consolidated covid-19 guidance for companies and auditors.

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11 Dec 2020

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Deloitte IFRS Masterclass 2020

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On 8-10 December 2020, Deloitte Middle East offers the IFRS Masterclass 2020 as an online event. There is no charge for attending, however, prior registration is required.

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The Financial Reporting Council (FRC) has completed a review of the Audit of entities going concern assessments across the seven largest UK audit firms and documented its key findings.

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The Financial Reporting Council (FRC) has published the results of its thematic review of corporate reporting in relation to IAS 7 ‘Statement of Cash Flows’ and the liquidity disclosure requirements in IFRS 7 ‘Financial Instruments: Disclosures’.

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14 Nov 2020

The Financial Reporting Council (FRC) has published a letter to Audit Committee Chairs and Finance Directors, in advance of the 2020/21 reporting season, setting out its expectations for preparers of reports and accounts for the coming year.

FRC publishes Developments in Audit 2020 report

14 Nov 2020

The Financial Reporting Council (FRC) has published their annual developments in audit report 2020.

Need to know — Accounting considerations related to the coronavirus 2019 disease

11 Nov 2020

This Need to know highlights some of the key issues to be considered by entities in preparing their financial statements applying IFRS Standards.

FCA Policy Statement delays ESEF implementation and extends publication deadlines for listed companies

10 Nov 2020

The Financial Conduct Authority (FCA) has published Policy Statement (PS) 20/14. The Policy Statement sets out the FCA’s decision to delay by one year mandatory requirements related to the European Single Electronic Format (ESEF). The Policy Statement also provides an update on extending deadlines for the publication of financial statements by listed companies in response to COVID-19.

IPSASB delays effective dates

09 Nov 2020

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

Financial Reporting Lab publishes third newsletter of 2020

02 Nov 2020

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

Accounting Roundup-October 2020

29 Oct 2020

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

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