The impact of COVID-19 is rapidly evolving, taking a tragic toll on human life and causing volatility in the global capital markets. Many companies are being forced to address the impact on their businesses, including accounting and financial reporting implications.
Our New Developments Summary (NDS) 2020-04, “COVID-19: Accounting and financial reporting considerations,” is designed to address certain accounting and financial reporting considerations for entities affected by COVID-19, including the possible effect on disclosures and internal controls. The NDS touches on pertinent considerations related to subsequent events, fair value measurement and financial asset impairment, leases, hedge accounting, revenue recognition, receipt of government assistance, modification/extinguishment of liabilities, SEC reporting, and insurance recoveries, among other topics.
NDS 2020-04 has been subsequently updated to address the accounting implications of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the Consolidated Appropriations Act, 2021, as well as other recent developments, including the accounting and disclosure requirements under the Paycheck Protection Program (PPP).
Download our NDS revised covid 19 accounting and financial reporting publication.