Covid-19 implications on financial reporting

The outbreak of the COVID-19 pandemic was marked by enormous restrictions, problems thatthe world was not prepared for and did not know how to deal with. The problems were not limitedto medicine, they affected all aspects of life, including business and financial reporting. Theemergence of new measures, implementation of aid packages, various reliefs due to thepandemic that reduced economic activity led to many changes in financial reporting. From thebeginning of its appearance until now, there are constantly new reactions and responses toCOVID-19, from the aspect of financial reporting. One of the most intimidating tasks facingcompanies’ financial representatives today is the urgent need to provide extensive disclosuresdetailing the pandemic’s impact and how that risk is being managed. The first and most importanttopic to address is going concern and liquidity. Reporting entities may have to revise theirdisclosures about liquidity risks to let investors know how they are managing their liquidity whiledealing with the COVID-19 crisis. Basically, this is an evaluation of company’s chance of survival.A survey conducted by Deloitte, one of the “Big Four”, will give an even clearer picture of howCovid-19 affects the operations and reporting of global companies