Coronavirus and preparing accounts
14 April 2020: ICAEW’s Technical Advisory Service highlights resources available to support those preparing accounts of entities affected by the coronavirus pandemic.
ICAEW has produced guidance for those preparing their accounts in accordance with FRS 102 or FRS 105.
- Bitesize Briefing: Financial reporting implications of COVID-19
Produced by ICAEW’s Financial Reporting Faculty, this short webcast considers the potential impact of coronavirus on accounts, particularly around the areas of post balance sheet events, going concern and impairment.
- The financial reporting implications of coronavirus
This ICAEW Financial Reporting Faculty guide highlights potential considerations for preparers of accounts around going concern, post balance sheet events and disclosures in the directors’ and/or strategic reports. It also considers micro-entities.
Until more guidance is available, those preparing accounts in accordance with FRS 102 may also wish to review the IFRS guidance referred to below as most of the considerations will be similar.
Guidance for those preparing accounts in accordance with IFRS
In addition to the FRC’s guidance for companies on corporate governance and reporting, those preparing accounts in accordance with IFRS may wish to review the following guidance.
- PwC Accounting implications of the effects of coronavirus
PwC’s guidance is a good starting point. It offers a useful summary of areas of IFRS accounts which may be affected by coronavirus.
- Deloitte Need to know – Accounting considerations related to the coronavirus 2019 disease
Deloitte’s detailed guidance considers a wide range of financial reporting implications. It is particularly useful in considering impairment, expected credit losses, onerous contracts and revenue from contracts with customers.
- KPMG COVID-19 Financial reporting resource centre
Structured in an FAQ style, KPMG’s resource centre gives practical considerations for preparers of IFRS accounts. It includes discussion on matters such as dealing with rent concessions, restructuring provisions, impairment and capitalisation of borrowing costs.
ICAEW is currently working to produce more detailed guidance for preparers of accounts to be made available on the financial reporting page of the coronavirus hub. In addition to preparing checklists for entities preparing accounts in accordance with FRS 102, FRS 105 and IFRS, future guidance is expected to include (but is not limited to):
- how management can make its assessment of going concern;
- post-balance-sheet events;
- Accounting for the various forms of financial support available from the government; and,
Further guidance and resources in connection with coronavirus are available on ICAEW’s Coronavirus hub.
ICAEW members, affiliates or members of staff in an eligible firm with member firm access may discuss their specific situation with the Technical Advisory Service. Due to ICAEW following current government guidelines with regards to coronavirus, the telephone helpline is currently unavailable. However the Technical Advisory Service can be contacted on live web chat here or by email to firstname.lastname@example.org.