Potential Effects of the Coronavirus Outbreak on Financial Reporting

Every financial year end is marked with significant chaos as most companies are trying to match their accounts and generate year-end financial statements. This financial year end is however marked with additional mayhem on account of the global outbreak of COVID-19.

Whilst the global public health emergency continuous to disrupt normal lives, it is also altering business and consumer activity, which may have a significant impact on financial statements, sending accountants and auditors into a reporting dilemma.

Owing to current uncertainty and disruption to business and supply chains, organisations will have to relook at their books, in light of the impact of the global pandemic.

To help businesses understand these financial reporting implications, we have created a brief manual of the considerations that would need attention when generating the year end financial statements.