Financial Reporting Considerations Related to COVID-19 and an Economic Downturn
The COVID-19 pandemic is affecting major economic and financial markets, and virtually all industries and governments are facing challenges associated with the economic conditions resulting from efforts to address it.
For example, many entities in the travel, hospitality, leisure, and retail industries have seen sharp declines in revenues due to regulatory and organizational mandates and voluntary changes in consumer behavior.
To address these economic challenges, some governments are pursuing laws or other related initiatives.
Entities must carefully consider their unique circumstances and risk exposures when analyzing how recent events may affect their financial statements. Specifically, financial statement disclosures will need to convey the material effects of the COVID‑19 pandemic.
Deloitte's most recent executive summary discusses certain key financial reporting considerations related to conditions that may result from the COVID‑19 pandemic.