In a joint statement, the Financial Conduct Authority (FCA), the Financial Reporting Council (FRC) and the Prudential Regulation Authority (PRA), identify a series of actions, designed to protect the capital markets by ensuring the continued flow of information to investors.
While unprecedented and extreme, the impacts of the COVID-19 pandemic are likely to rebound sharply once social restrictions are lifted. In the meantime, maintaining the communication of accurate and timely information to investors is vital.
Users of financial statements are encouraged to consider the unique set of circumstances arising, which might result in uncertainty, delays and an increase in modified audit opinions. In particular, given the common goal that the financial system should be a source of strength for the real economy, lenders are encouraged to take account of these circumstances when responding to covenant breaches.
We summarise the guidance for companies, which covers advice for both corporate governance and reporting responsibilities in our paper COVID-19:Corporate governance and reporting.