Three words describe it best: update, update, update.
The current situation is very dynamic, volatile and unpredictable. Who would have thought for example that oil prices could ever become negative? Estimating how fast the situation will recover and market participants begin to adapt to new realities requires significant judgement. What is clear, though, is that the budgets and forecasts prepared as of 31 December 2019 are no longer appropriate. But how should a company deal with the current uncertainty when updating budgets and forecasts?
Even economists are struggling to predict future developments. Therefore, companies should prepare multiple, plausible scenarios (including a downside scenario) and factor in external information to make budgets and forecasts more robust. This process should be highly dynamic to make sure that the scenarios reflect the latest updates on the situation as at the reporting date.