Financial reporting implications related to regions experiencing economic struggles
Financial Reporting Alert 15-2
Economic conditions in various parts of the world continue to be volatile. This financial reporting alert discusses certain key accounting and financial reporting considerations related to the current economic conditions in regions with significant economic uncertainty or volatility.
This Financial Reporting Alert is divided into the following four sections:
- Broad Financial Reporting Considerations.
- Financial Instruments.
- SEC Reporting and Disclosure Considerations.
- Income Tax Considerations.
The alert also contains two appendixes. Appendix A summarizes additional financial reporting implications that would result from a country’s decision to exit the eurozone. Appendix B outlines certain disclosures recommended by the SEC staff in 2012 about European sovereign debt.
Although this publication discusses key financial reporting issues that typically arise in periods of economic uncertainty, entities must carefully consider their unique circumstances and risk exposures when analyzing how recent events may affect their financial reporting. Most importantly, they should ensure that their financial reporting and disclosures convey all material effects that have resulted, or could result, from these events. This may necessitate disclosures (in both the financial statements and MD&A or other sections of SEC filings) beyond those specifically required by U.S. GAAP or SEC regulations.
View the rest of the Financial Reporting Alert.
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Financial Reporting Alerts highlight up-to-the-minute accounting, regulatory, or other developments that may require immediate action by our professionals and clients or that may affect current financial reporting and disclosure.