Accounting considerations related to COVID-19 — Covenants

Published on: 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.

This video is part of our series of videos on accounting considerations with regard to COVID-19.

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