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Free resources to help SMEs consider impact of COVID on accounts

Author: ICAEW

Published: 04 Mar 2021

Chartered accountancy body ICAEW has launched free resources to help SMEs account for the impact of the pandemic on their year-end reports.

The online resources contain six central questions to help business decision makers ask the right questions as they prepare their accounts and consider the effect COVID has had on their bottom line.

By following the questions and the associated guidance, businesses will be able to check their reports for the financial year 2020/21 are not technically inadequate or inconsistent.

ICAEW has designed the resources so companies can think about the government support they have received as a result of the pandemic, changes to their markets and business models, and the effects of tax, business rates and rental holidays.

The six questions ask:

  • What lines of business are currently not viable?
  • What government financial support has been received?
  • What assets are being used less?
  • What contract rights might you not honour?
  • What contract rights might you not enforce?
  • Why do the accounts matter?

John Boulton, ICAEW Technical Policy Director, said:

“As businesses prepare their financial reports for this extraordinary year, they will need to address the many anomalies and uncertainties the pandemic has brought with it.

“We’re concerned that in this climate reporting will be very challenging, so we’ve designed these free resources to help businesses make sure they are asking the questions that matter and are properly considering the different impacts of coronavirus.

“It’s vital that businesses get this right so they can produce accurate and consistent reports, and we hope they find the resources helpful.”

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