Second Quarter — 2020
Welcome to Quarterly Accounting Roundup: Second Quarter — 2020. The economic implications related to coronavirus disease 2019 (“COVID-19”) continued to dominate the accounting and financial reporting headlines in the second quarter of 2020. Entities experienced conditions often associated with a general economic downturn, including, but not limited to, financial market volatility and erosion of market value, deteriorating credit, liquidity concerns, further increases in government intervention, increasing unemployment, broad declines in consumer discretionary spending, increasing inventory levels, reductions in production because of decreased demand and supply constraints, layoffs and furloughs, and other restructuring activities. To help deal with the effects of the pandemic, Congress enacted a number of laws, including the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”); the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020; the Families First Coronavirus Response Act; and the Paycheck Protection Program and Health Care Enactment Act.
The SEC has also continued to take actions in response to the pandemic. For example, the chairman and chief accountant of the SEC have both released statements concerning the pandemic, the Division of Corporation Finance has issued Disclosure Guidance Topic 9A, and several SEC Divisions have issued guidance on various COVID-19-related topics, including interpretations related to the broker-dealer financial responsibility rules. Further, the SEC adopted a final rule that amends the disclosure requirements for acquisitions and dispositions of businesses.