COVID-19 Resources

This Financial Reporting Alert discusses key accounting and financial reporting considerations related to conditions that may result from the COVID-19 pandemic as well as various industry-specific considerations. This alert has been updated to add disclosure considerations related to the effects of the COVID-19 pandemic on an entity’s financial reporting.

This issue discusses key aspects of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which provides $2.2 trillion of economy-wide financial stimulus in the form of financial aid to individuals, businesses, nonprofits, states, and municipalities. The issue focuses on provisions of the CARES Act related to financial instrument and income taxes as well as on determining the appropriate accounting models for government assistance. This issue has been updated to add disclosure considerations related to various provisions of the CARES Act.

This Financial Reporting Alert takes a strategic look at the financial reporting and accounting challenges related to COVID-19 that are top of mind for many companies as well as trending and ongoing issues. It also provides insights into different alternatives that companies are pursuing in response to the challenges.

This Financial Reporting Alert discusses considerations for registrants related to reflecting specific impacts of COVID-19 in their non-GAAP measures as well as (1) important disclosures associated with the presentation of non-GAAP measures, (2) alternatives to non-GAAP measures, (3) disclosure controls and procedures related to non-GAAP measures, and (4) income statement classification considerations.

This Financial Reporting Alert takes a strategic look at what are likely to be the most common hot topics related to accounting for the coronavirus disease 2019 (“COVID-19”) pandemic in the current reporting quarter.

This issue discusses the FASB’s recently issued Accounting Standards Update (ASU) No. 2020-05, Revenue From Contracts With Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities. The ASU amends the effective dates of the Board’s standards on revenue and leasing to give immediate relief to certain entities as a result of the widespread adverse economic effects and business disruptions caused by the coronavirus disease 2019 pandemic.

This issue discusses accounting and reporting considerations for business entities that receive Paycheck Protection Program loans that may be forgivable under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act").

This issue discusses the FASB staff Q&A issued on April 28, 2020, in response to frequently asked questions about how the coronavirus disease 2019 (“COVID-19”) pandemic might affect entities’ application of the cash flow hedge accounting guidance in ASC 815.

This issue provides answers to various questions about temporary relief from the accounting and disclosure requirements in U.S. GAAP for troubled debt restructurings that entities have been offered under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the “interagency statement” issued by a group of banking regulators. This issue was updated to reflect developments as a result of informal discussions with staff members of the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency in connection with the April 24, 2020, webcast “Ask the Regulators: Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working With Customers Affected by the Coronavirus.”

This issue summarizes decisions made at the FASB’s April 8, 2020, meeting related to the Board’s ongoing efforts to monitor and respond to the impact that COVID-19 has on the preparation of financial statements under U.S. GAAP, including the related accounting and financial reporting implications. This issue was updated to add an appendix that discusses the FASB staff Q&A issued on April 10, 2020, regarding the accounting for rent concessions that directly result from the COVID-19 pandemic. The appendix contains background information on the staff Q&A as well as Deloitte’s interpretive guidance on frequently asked questions related to it.

This issue discusses actions that might be taken by the SEC or FASB as a result of the relief extended to banks and credit unions by the newly enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act.

This Financial Reporting Alert discusses certain key accounting, disclosure, and internal control considerations related to conditions that may arise as a result of coronavirus disease 2019.

As organizations around the world rapidly enact their crisis recovery plans and focus on ensuring the safety of their people and their assets, business as usual activities risk being interrupted or cancelled. Financial reporting processes are no exception; however, at a time of such exceptional uncertainty there continues to be a need to give investors, regulators and other stakeholders relevant and timely information about operational and financial performance.

This publication discusses healthcare accounting and financial reporting considerations related to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).

This article discusses certain industry-specific accounting and financial reporting considerations related to COVID-19 for the power, utilities, and renewables sector.

The SEC has issued a statement summarizing the “current target, temporary relief and assistance provided by the Commission and staff.”

SEC Chief Accountant Sagar Teotia has issued a statement on the importance of high-quality financial reporting in light of the significant impacts of COVID-19.

The SEC’s Division of Trading and Markets has issued frequently asked questions (FAQs) about “certain provisions of the broker-dealer financial responsibility rules during the COVID-19 pandemic.”

The SEC has issued a public statement by SEC Chairman Jay Clayton and the SEC Chief Economist and Director S.P. Kothari on the work of the COVID-19 Market Monitoring Group.

The staff of the SEC’s Division of Corporation Finance has issued four FAQs related to COVID-19.

The SEC has issued a temporary final rule, “Temporary Amendments to Regulation Crowdfunding,” that provides “tailored, conditional relief to established smaller companies [affected directly or indirectly by COVID-19] from certain requirements of Regulation Crowdfunding relating to the timing of the offering and the availability of financial statements required to be included in issuers’ offering materials while retaining appropriate investor protections.”

The SEC has issued two exemption orders that establish timelines for implementation of the Consolidated Audit Trail (CAT).

The SEC has posted to its Web site a public statement by SEC Chairman Jay Clayton and SEC Division of Corporation Finance Director William Hinman emphasizing the importance of providing financial statement disclosures on the impact of COVID-19, particularly forward-looking disclosures.

The staff of the SEC’s Division of Investment Management (the “Division”) has issued FAQs on funds and advisers affected by COVID-19. The nine FAQs are broken into sections on the following three topics: (1) contacting the Division, (2) investment advisers, and (3) investment companies.

The SEC has added Questions 104.18 and 112.02 to its C&DIs on Exchange Act forms. The C&DIs are related to multijurisdictional disclosure system filers and domestic registrants that have elected to file part III of Form 10-K in proxy statements that would be filed within 120 days of year-end.

The SEC has posted to its Web site a public statement made by SEC Chief Accountant Sagar Teotia regarding the Commission’s response to the COVID-19 crisis.

The staff in the SEC’s Division of Corporation Finance has updated its compliance and disclosure interpretations (C&DIs) related to the SEC’s recent order granting a 45-day extension to file certain disclosure reports as a result of COVID-19.

The SEC has issued a temporary final rule and an order to provide “additional temporary regulatory relief to market participants in response to the effects of the Coronavirus Disease 2019 (COVID-19).”

The SEC has issued an order updating its previously enacted conditional reporting relief order related to COVID-19. The SEC has also issued two orders (releases IA-5469 and IC-33824) “that would provide certain investment funds and investment advisers with additional time with respect to holding in-person board meetings and meeting certain filing and delivery requirements, as applicable.”

The SEC has issued an order that offers “temporary flexibility for registered funds affected by recent market events to borrow funds from certain affiliates and to enter into certain other lending arrangements.”

The SEC staff has issued guidance to help issuers, shareholders, and other market participants affected by COVID-19 meet their obligations under the federal proxy rules.

The FASB staff has issued a Q&A on the “application of the US GAAP Financial Reporting Taxonomy (Taxonomy) to disclosures related to the effects of the coronavirus (also referred to as COVID-19) pandemic and relief efforts.”

The FASB staff has published a Q&A document, Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic. The document notes that for such concessions, “an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in Topic 842 and Topic 840 to those contracts.”

At its April 8, 2020, meeting, the FASB discussed (1) effective date considerations as a result of the COVID-19 disruptions and (2) other COVID-19 related matters.

The GASB has issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance. The purpose of Statement 95 is to “provide relief to governments and other stakeholders in light of the COVID-19 pandemic.”

The CAQ has issued Interim Financial Statements Included in Form 10-Q: Auditor Responsibilities and COVID-19 Considerations for Investors and Audit Committees. This resource provides a “high-level overview of the auditor’s responsibilities related to the interim financial statements included in Form 10-Q.”

The CAQ has issued, “CAQ COVID-19 Resource: Key Auditor and Audit Committee Considerations.” This resource provides “high-level financial reporting considerations for auditors and audit committees as certain audits near completion, quarterly reviews are occurring, and during planning for 2020 audits.”

The GASB has announced that it is taking certain actions in response to the COVID-19 pandemic.

President Trump has signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. Passed unanimously by the U.S. Senate and House of Representatives, the CARES Act provides assistance to individuals, large corporations, small businesses, state and local governments, public health, education, and other safety net programs. The CARES Act represents the third aid package from Congress related to COVID-19.

The GASB has announced that it has added a new project to its technical agenda to consider whether to postpone the effective dates of all Statements and implementation guides that begin on or after June 15, 2018.

In view of the ongoing coronavirus (COVID-19) pandemic, the PCAOB has announced that it has decided “to provide PCAOB-registered audit firms an up to 45-day relief period from inspections, with the exception of providing [the PCAOB] access to audit documentation for certain engagements.”