COVID-19

Perspectives

COVID-19 and financial reporting issues

Exploring forecasts, stakeholder communications, and more

[Published September 2020] Take a strategic look at COVID-19-related accounting and financial reporting issues that are top of mind, trending, and ongoing at many companies. Then explore insights into alternative approaches companies are pursuing in response to these financial reporting challenges.

COVID-19 and financial reporting challenges

The business environment is different than it was three months ago—or is it largely the same? The answer to this question may depend on your perspective. While individual companies may be in very different stages of their survival, recovery, or evolution, one thing is certain: the coronavirus disease 2019 (“COVID-19”) pandemic has touched all industries and sectors, and literally no company has been immune to its impact.

Regardless of industry, financial condition, supply chain and distribution logistics, workforce composition, changing customer preferences, etc., all companies currently face a myriad of financial reporting and accounting challenges related to COVID-19. The challenges are prevalent in most companies to varying degrees.

This publication takes a strategic look at the financial reporting and accounting challenges that are top of mind for many companies as well as trending and ongoing issues. It also provides insights into different alternatives companies are pursuing in response to the challenges. Links to other Deloitte financial reporting resources that address the effects of the COVID-19 pandemic are provided throughout this publication.

by Eric Knachel and Jana Allen, Deloitte & Touche LLP

Trending accounting and financial reporting issues

Ongoing accounting and financial reporting issues

While some COVID-19-related issues may be characterized as “ongoing,” such categorization is not intended to diminish the significance or pervasiveness of the matter. Rather, it merely acknowledges that many of the COVID-19-related issues that companies currently face also existed in prior periods.

[Published June 5, 2020] COVID-19 and financial reporting trends

This Financial Reporting Alert takes a strategic look at what are likely to be the most common hot topics related to accounting for the coronavirus disease 2019 (“COVID-19”) pandemic in the current reporting quarter.

View the COVID-19 and Financial Reporting Trends alert on DART

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Accounting and financial reporting-related resources

This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor.

Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

The services described herein are illustrative in nature and are intended to demonstrate our experience and capabilities in these areas; however, due to independence restrictions that may apply to audit clients (including affiliates) of Deloitte & Touche LLP, we may be unable to provide certain services based on individual facts and circumstances.

Footnotes:

See CF Disclosure Guidance Topic No. 9, Coronavirus (COVID-19), and CF Disclosure Guidance Topic No. 9A, Coronavirus (COVID-19) — Disclosure Considerations Regarding Operations, Liquidity, and Capital Resources.

2 A registrant may choose to present a non-GAAP measure that makes adjustments for unusual, direct, and incremental costs attributable to COVID-19 while also presenting the most directly comparable GAAP measure with equal or greater prominence. See additional discussion of non-GAAP measures.

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