When uncertainties caused by COVID-19 may have a significant effect on the company’s ability to continue as a going concern, providing transparent disclosures about the impact of COVID-19 in the 2019 year-end financial statements is of paramount importance. For December 2019 year-end financial statements, the COVID-19 impacts are considered non-adjusting post-balance sheet events and therefore do not affect valuations of assets and liabilities. The focus for companies in their 2019 financial statements therefore will be on disclosures.
In this factsheet we in particular focus on the effects of COVID-19 on the auditor’s report.
We trust that this publication will be useful in understanding the various options auditors have to communicate about COVID-19 in the auditor’s report and the approach we have chosen as KPMG. If you have any questions regarding this factsheet, please do not hesitate to contact Mark Vaessen.