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COVID-19 – Financial reporting implications

Discussing the accounting and disclosure implications and actions management can take now

Discussing the accounting and disclosure implications and actions management can take now

16 April 2020

Most companies are likely to be impacted by the COVID-19 coronavirus pandemic, either directly or indirectly, and the increased economic uncertainty and risk may have significant financial reporting implications.

In this podcast, KPMG's global IFRS leader, Reinhard Dotzlaw, asks Gabriela Kegalj, Chris Spall and Brian O’Donovan to share their insights on the accounting and disclosure implications for companies, and the actions management can take now.

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“COVID-19 poses existential threats on the ability of a business to survive, which in turn have significant financial reporting impacts – from going concern and liquidity to recoverability and valuation of assets.”

Reinhard Dotzlaw
KPMG’s Global IFRS leader


“The key questions will be: are the impacts of COVID-19 creating uncertainties that cast significant doubt on a company’s ability to continue as a going concern? And what’s the worst-case scenario that is realistically possible?”

Gabriela Kegalj
Partner, KPMG in Canada


“You can’t just wait until customers start not paying you and then book a provision. In my experience, the models corporates use for this give a very large weight to historical data and the inputs will need to be updated for COVID-19 conditions.”

Chris Spall
Partner, KPMG in the UK

 

“We sometimes say in revenue accounting that even fixed consideration can be variable. If you are offering concessions to your customers, that could have a dramatic impact on your revenue recognition.”

Brian O'Donovan
Partner, KPMG International

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