Accounting and Financial Reporting Considerations Related to COVID and the Economic Downturn

Author: Lynn Fountain

The continuing impacts of 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. When COVID-19 surfaced in early 2020, most individuals felt the health pandemic could be brought under control within six months. However, the virus has been more virulent and persistent than anyone wanted to believe. And, it has definitely impacted more than just health issues. The accounting industry has faced ongoing challenges brought about by attempting to implement new standards, remote work, emerging technologies and increased cyber risk.

The purpose of this session is to provide an up-to-date highlight of some of the most common matters for consideration, and to provide practical guidance for auditors and preparers. We will focus on cases where substantial judgment and professional skepticism are necessary to assess the facts and ensure that the operative standards are applied. We will also discuss key considerations and issues for accounting and financial reporting related to COVID-19 and the impact of various economic stimulus acts. The bullet points outlined in the learning objectives are intended to provide an overview of areas that will be examined. This course Ongoing Assessment of the Impact of COVID

Publication Date: March 2022

Designed For
CFO’s, CEO’s, Board Members, Managers, Supervisors, and any individual seeking to be a leader.

Topics Covered

• Examine the state of economic uncertainty and how it may impact U.S. companies
• Identify accounting areas impacted by conditions of the pandemic and economy
• Recognize how to examine the impact of preparation of current and forward-looking financial statements
• Evaluate the need for proper FS disclosures
• Consider the impact of
  • When FV of an entity may be below carrying amount
  • Process for the use of assumptions/estimates that may change due to COVID
  • Describe conditions evaluated when testing goodwill for impairment in a COVID environment
• Examine emerging trends in information technology and how this impacts financial reporting

Learning Objectives

• Identify specific accounting and concern areas that may be impacted by conditions of the pandemic
• Identify emerging topic matters for accounting and financial reporting
• Recognize how to examine the impact of preparation of current and forward-looking financial statements
• Describe the need for proper financial statement disclosures
• Recognize the impact of when the fair value of an entity may be below carrying amount
• Recognize the impact of the process for the use of assumptions or estimates that may change due to COVID
• Recognize which ASC provides guidance on determining when to recognize such costs and information that must be disclosed in the notes to the financial statements
• Describe conditions evaluated when testing goodwill for impairment in a COVID environment
• Identify emerging trends in information technology and how this impacts financial reporting
• Identify the look-forward period for an entity with respect to going concern
• Recognize the accounting/financial reporting issue that should not be on the radar of accounting professionals
• Identify the organization that determined it is appropriate for entities to make a policy election regarding how to account for lease concessions resulting from the pandemic
• Differentiate ASC topics and how they apply

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
None

Advance Preparation
None