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Coronavirus and financial reporting

Guidance for preparers of financial statements on the coronavirus outbreak, including advice on disclosure of risks and treatment of events after the reporting period.

We have a separate page on Coronavirus and audit with further guidance for auditors.

General accounting guidance

ICAEW insights

The financial reporting implications of coronavirus

10-03-2020

As coronavirus continues to spread and more information comes to light about the nature of the virus and its impact, companies with 2019 and early 2020 year-ends need to consider how it affects their business and how the effects should be reported in the accounts. This guide is primarily aimed at those entities preparing accounts in accordance with FRS 102.

Guidance from regulators

FRC Company Guidance Update March 2020 (COVID-19): Guidance for companies on Corporate Governance and Reporting

FRC 26-03-2020

Guidance for companies published by the FRC highlighting key issues for boards and addressing common challenges for preparers of annual reports and other corporate reporting, particularly regarding disclosures. The high-level guide provides notes on management information, risk management and internal controls systems, dividends and capital maintenance, corporate reporting, strategic report and viability statement, going concern and material uncertainties, significant judgements and estimation uncertainty, events after the reporting date.

Other external sources

Accounting considerations related to coronavirus disease 2019

Deloitte 20-03-2020

Need To Know bulletin from Deloitte IAS Plus outlining key issues to be considered by entities in preparing their financial statements applying IFRS Standards for periods ending on or after 31 December 2019. The briefing highlights issues around material judgements and uncertainties, impairment of non-financial assets, valuation of inventories, allowance for expected credit losses (ECL), fair value measurements, onerous contracts provisions, restructuring plans, breach of covenants, going concern, liquidity risk management, and events after the end of the reporting period.

Accounting considerations of the coronavirus outbreak (Updated March 2020)

EY 20-03-2020

Updated guide from EY highlighting accounting considerations for the financial effects of the coronavirus when preparing annual or interim IFRS financial statements in 2020. It discusses going concern, financial instruments, assets impairment, government grants, income taxes, liabilities from insurance contracts, leases, insurance recoveries, onerous contract provisions, fair value measurement, revenue recognition, events after the reporting period, other financial statement disclosure requirements, and other accounting estimates.

Accounting implications of the effects of coronavirus: PwC In depth

PwC 16-03-2020

UK version of this in-depth guide considering the impact on financial statements for periods ending after 31 December 2019 of entities whose business is affected by the virus. The guide discusses non-financial assets; financial instruments and leases; revenue recognition; non-financial obligations; going concern; disclosures; and interim financial statements.

Topic specific guidance

Going concern

IFRS 9

Accounting implications of the COVID-19 outbreak on the calculation of expected credit losses in accordance with IFRS 9

ESMA 25-03-2020

Statement from the European Securities and Markets Authority (ESMA) addressing the accounting implications of economic measures implemented by national governments and EU bodies. The statement highlights IFRS 9 Financial Instruments in particular and discusses accounting for the modifications resulting from the introduction of the support measures, assessment of significant increase in credit risk (SICR), Expected Credit Loss estimation, public guarantees on issuers' exposures, and transparency.

Charities

COVID-19 control measures and financial reporting by charities

Charities SORP 23-03-2020

Guidance for trustees and preparers of charity accounts produced by the SORP-making body. The briefing highlights the potential impact of control measures to contain COVID-19 on financial reporting by charities and discusses the implications for trustees' annual reports, going concern and the alternative basis to going concern when preparing accounts under the Charities SORP.

Advice on filing accounts and annual returns

Coronavirus: extensions to filing deadlines and changing reporting dates

ICAEW 26-03-2020

26 March 2020: Companies House has advised that companies who are unable to meet their filing deadline due to COVID-19 will be granted an automatic and immediate three-month extension. However, companies must apply and applications must be submitted before the company’s filing deadline. Changing the year-end accounting date may also be an appropriate course of action for some companies in light of the current public health situation.

Information for capital markets and regulators

Coronavirus: keep the information flowing to markets

ICAEW 30-03-2020

30 March 2020: for listed companies, keeping the market up to date with information is as important as ever, notwithstanding that they have been given an extra time to publish their audited financial statements, writes ICAEW’s Katerina Joannou.

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