COVID-19 Resources

This IFRS in Focus outlines the recent amendment to IFRS 16 Leases titled Covid-19-Related Rent Concessions beyond 30 June 2021, published by the International Accounting Standards Board (Board) in March 2021.

As the pandemic increases in both magnitude and duration, entities are experiencing conditions often associated with a general economic downturn. This includes, but is not limited to, financial market volatility and erosion, 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, layoffs and furloughs, and other restructuring activities. The continuation of these circumstances could result in an even broader economic downturn which could have a prolonged negative impact on an entity’s financial results. This IFRS in Focus discusses certain key IFRS accounting considerations related to conditions that may result from the COVID-19 pandemic.

Key changes include clarifications on disclosures for 'Going concern' and 'Liquidity risk management', new subsections on 'Dividends and capital management' and 'Contracts to buy/sell commodities', added guidance for idle assets in 'Acquisitions and disposals', as well as clarifications in 'Share-based payments', 'Government assistance' and 'Breach of covenants'.

The Coronavirus Disease 2019 (COVID-19) pandemic is affecting economic and financial markets, and virtually all industries are facing challenges associated with the economic conditions resulting from efforts to address it. As the pandemic increases in both magnitude and duration, entities are experiencing conditions often associated with a general economic downturn.

This series of webcasts discusses certain key IFRS accounting considerations related to conditions that may result from the COVID-19 pandemic.

In the light of the ongoing COVID-19 pandemic, financial reporting for the first half of 2020 has been extremely challenging. This IFRS in Focus is addressed to high level executives and audit committees and takes a strategic look at what are likely to be the most common hot topics for the upcoming financial reports, whether annual or interim. The publication explains as to why those topics are trending and what might be some of the related tension points. It is an overview of critical accounting issues that are addressed in more detail in our IFRS in Focus on accounting considerations related to the coronavirus 2019 disease.

This IFRS in Focus addresses the amendment to IFRS 16 Leases published by the IASB in May 2020, titled Covid-19-Related Rent Concessions. This is an update of our earlier IFRS in Focus on the Exposure Draft.

This IFRS in Focus addresses the proposed amendment to IFRS 16 'Leases' set out in Exposure Draft ED/2020/2 Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16) (the ‘ED’) published by the International Accounting Standards Board (IASB) in April 2020.

This publication discusses certain key IFRS accounting considerations related to the accounting for expected credit losses (ECL) that may result from the COVID-19 pandemic. The focus of this publication is for lenders and banks though much of it will be applicable to measurement of ECL in industries other than financial services.

Global responses to the coronavirus disease 2019 (COVID-19) outbreak continue to rapidly evolve. Numerous publications and announcements of developments have sprung up around the world. Since it has become more and more difficult to follow all of them, we have put together a meta-collection of collections that we found helpful and worth browsing.

The European Securities and Markets Authority (ESMA) has announced the priority issues that the assessment of listed companies' 2021 financial statements will focus on. A special focus is on COVID-19 and climate-related disclosures.

The European Union has published a Commission Regulation endorsing 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)' issued by the IASB in March 2021.

The Canadian Accounting Standards Board (AcSB) has released guidance on COVID-19 and the going concern assumption.

The International Accounting Standards Board (IASB) has published 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)' that extends, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification.

In a supplementary meeting held earlier today, the IASB considered the feedback received on the February 2021 exposure draft 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)' and decided to finalise the proposed extension of the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification by one year.

The International Accounting Standards Board (IASB) has published an exposure draft 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)' that contains a proposed extension of the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Comments are requested by 25 February 2021.

The International Valuation Standards Council (IVSC) has published a perspectives paper 'Challenges to Market Value' that looks at the challenges in relation to the availability of market information in a pandemic world.

The International Valuation Standards Council (IVSC) has published a perspectives paper 'Challenges to Market Value' that looks at the challenges in relation to the availability of market information in a pandemic world.

The IFRS Foundation has issued educational material, 'Going concern — a focus on disclosure', which intends to supports companies in its implementation of the requirements related to the preparation of financial statements using IFRS Standards on a going concern basis.

The European Securities and Markets Authority (ESMA) has announced the priority issues that the assessment of listed companies' 2020 financial statements will focus on. A special focus is on COVID-related matters.

IASB Board member Mary Tokar and technical staff member Sid Kumar have released an article that provides an overview of the key financial reporting considerations associated with COVID-19.

The South African Integrated Reporting Committee (IRC) has published 'FAQ – Reporting in a time of crisis'.

The International Federation of Accountants (IFAC), the Zurich University of Applied Science (ZHAW), and the International Public Sector Accounting Standards Board (IPSASB) have published a tool for governments and other interested stakeholders to apply best practices in public sector accounting when analysing COVID-19-related intervention programs.

The UK Financial Reporting Council (FRC) has published the results of a thematic review looking at company reporting since the onset of the COVID-19 pandemic.

The European Securities and Markets Authority (ESMA) has issued a public statement recommending coordination of supervisory action with regards to issuers’ accounting for COVID-19-related rent concessions.

Accountancy Europe has released a second podcast on the wider repercussions of COVID-19 for the public sector. The new podcasts discusses the long-term actions required to help overcome the effects of COVID-19.

The staff of the Australian Accounting Standards Board (AASB) has released 'Impairment of non-financial assets' reminding entities of the guidance available in the accounting standards when testing a non-financial asset for impairment.

Accountancy Europe has released a podcast exploring how the COVID-19 crisis differs from the 2008/09 financial crisis and the wider repercussions of the global lockdown across the economy for the public sector.

Two new reports from the Financial Reporting Lab of the UK Financial Reporting Council (FRC) provide practical guidance to companies in areas of reporting that investors have highlighted as being most critical in these times of unparalleled economic uncertainty.

The European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice for 'Covid-19-Related Rent Concessions (Amendment to IFRS 16)' not even a week after the amendment was issued by the IASB.

Accountancy Europe has analysed short-term and long-term actions that could support the public sector in countering the pandemic's impact, among them many actions with regard to transparency and reporting.

The International Organization of Securities Commissions (IOSCO) has issued a public statement on the importance of disclosure about COVID-19 aspects to highlight financial reporting issues that should be considered by issuers in order to provide investors with relevant and reliable information in their financial reports and related disclosure documents.

The International Accounting Standards Board (IASB) has published 'Covid-19-Related Rent Concessions (Amendment to IFRS 16)' amending the standard to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Concurrently, the IASB also published a proposed Taxonomy Update to reflect this amendment.

The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has published a statement 'Accounting implications of the impact of COVID-19 pandemic'.

The European Securities and Markets Authority (ESMA) has issued a public statement calling for transparency on COVID-19 effects in half-yearly financial reports.

Accountancy Europe has released a podcast exploring the repercussions of the corona crisis for corporate reporting and particularly focusing on banks. The podcast also discusses how IFRS 9 can incorporate the irregularities of the current situation and outlines other accommodations that have been made for both companies and banks to report on this period.

In a supplementary meeting today, the IASB considered the feedback it received on its 24 April exposure draft 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)' that contained a proposed amendment that would provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. The 14-day comment letter period closed on 8 May 2020 and the Board received 110 comment letters (including late submissions).

The European Financial Reporting Advisory Group (EFRAG) has published a draft comment letter on the IASB exposure draft ED/2020/2 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)'.

The Accounting Standards Board of Canada (AcSB) has published a series of short articles on accounting considerations in the context of the COVID-19 pandemic.

The International Accounting Standards Board (IASB) has published an exposure draft 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)' that contains a proposed amendment that would provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Comments are requested by 8 May 2020.

In advance of its regular meeting next week, the IASB held a supplementary IASB meeting today to consider COVID-19-related matters: the Board's timelines in view of the COVID-19 pandemic and accounting for COVID-19-related rent concessions.

In June 2015, the European Securities and Markets Authority (ESMA) published its final Guidelines on Alternative Performance Measures (APMs) for listed issuers that became effective in July 2016. Since then, ESMA has published several questions and answers on the guidelines to promote common supervisory approaches and practices in the implementation of them. A new question has now been added to the document on the use of APMs in the context of COVID-19.

The IASB is holding a supplementary IASB meeting to consider COVID-19-related matters on Friday 17 April 2020.

The International Accounting Standards Board (IASB) has published a document responding to questions regarding the application of IFRS 16 'Leases' during the period of enhanced economic uncertainty arising from the COVID-19 pandemic. At its upcoming meeting, the IASB will discuss the matter further and will also consider effective dates, consultations periods and publication dates in general.

The International Public Sector Accounting Standards Board (IPSASB) has published 'COVID-19: Relevant IPSASB Accounting Guidance'. The questions and answers publication was issued by the staff of the IPSASB to provide insight into the financial reporting issues associated with COVID-19 government responses.

The International Organization of Securities Commissions (IOSCO) has released a statement on consistent application and enforcement of high-quality accounting standards which are of critical importance to the proper functioning of the capital markets — especially in times of uncertainty.

The International Accounting Standards Board (IASB) has published a document responding to questions regarding the application of IFRS 9 'Financial Instruments' during the period of enhanced economic uncertainty arising from the COVID-19 pandemic.

The German Institut der Wirtschaftsprüfer (IDW) has released comprehensive guidance on IFRS 9.

The Office of the Superintendent of Financial Institutions (OSFI) in Canada has released a statement that includes guidance on Applying IFRS 9 in extraordinary circumstances that will allow companies to remain compliant with IFRS as issued by the IASB.

The Prudential Regulation Authority (PRA) of the Bank of England has released a statement 'Covid-19: IFRS 9, capital requirements and loan' covenants that offers an annex with guidance consistent with IFRS 9 to assist firms in making well-balanced and more consistent ECL estimates and in determining how to treat payment holidays and similar schemes for accounting and regulatory purposes.

The European Securities and Markets Authority (ESMA) has issued a public statement on some accounting implications of the economic support and relief measures adopted by EU Member States in response to the COVID-19 outbreak. The measures include moratoria on repayment of loans and have an impact on the calculation of expected credit losses in accordance with IFRS 9.

The Malaysian Accounting Standards Board (MASB) has countered calls for a temporary exemption from MFRS 9 (the Malaysian equivalent of IFRS 9) with a statement reassuring its constituents “that the principle-based nature of the Malaysian Financial Reporting Standards (MFRS) Framework requires and allows for judgement in addressing the accounting challenges arising from COVID-19”.

Accountancy Europe has released an article exploring coronavirus’ effects. In addition, Accountancy Europe is collecting all resources relevant for European professional accountants.

The Australian Accounting Standards Board (AASB) together with the Australian Auditing and Assurance Standards Board (AUASB) has released 'The Impact of Coronavirus on Financial Reporting and the Auditor’s Considerations' describing the key considerations and impacts on financial reporting and auditing arising from the Coronavirus (COVID-19) pandemic.