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Financial Reporting Alert 20-2 — Financial reporting considerations related to COVID-19 and an economic downturn

Published on: 11 Jan 2021

This Financial Reporting Alert discusses key accounting and financial reporting considerations related to conditions that may result from the COVID-19 pandemic as well as various industry-specific considerations. Entities may find this publication particularly useful as they address some of the more pervasive and difficult accounting and reporting challenges stemming from the pandemic, including the preparation of forward-looking cash flow estimates; the recoverability and impairment of assets; the accounting for financial assets, contract modifications, and subsequent events; going-concern issues; and SEC reporting considerations.

Originally issued on 25 March 2020, this alert has been updated for:

  • Changes as a result of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) as well as other accounting and financial reporting developments associated with the COVID-19 pandemic. [13 April 2020]
  • Additional new content, expand on several discussions, and insert cross-references to additional resources. [24 April 2020]
  • Recent accounting and financial reporting developments associated with the COVID-19 pandemic. [7 May 2020]
  • Issuance of a second statement by SEC Chief Accountant Sagar Teotia on the continued importance of high-quality reporting in light of coronavirus disease 2019. [1 July 2020]
  • Issuance of CF Disclosure Guidance (DG) Topic No. 9A by the SEC's Division of Corporation Finance. [1 July 2020]
  • Statement by the SEC that COVID-19-related deadline relief would not be extended beyond the previous July 1, 2020, expiration date. [1 July 2020]
  • Expanded guidance on the use of non-GAAP measures for COVID-19-related adjustments. [1 July 2020]
  • The AICPA’s issuance of a technical Q&A on the recognition of interest income. [8 July 2020]
  • The International Swaps and Derivatives Association’s preclearance consultation with the SEC staff. [8 July 2020]
  • Disclosure considerations related to the effects of the COVID-19 pandemic and certain provisions of the CARES Act on an entity’s financial reporting. [18 September 2020]
  • Certain provisions of the Consolidated Appropriations Act, 2021, that extend relief under the CARES Act related to troubled debt restructurings as a result of COVID-19. [11 January 2021]

Appendix E lists content that has been added or amended in this and previous updates to this publication.

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