When organizations are financially struggling or affected by external events, several accounting considerations come into play. External events arising from the COVID-19 pandemic and its disruption could intersect with several components of accounting. A brief summary of possible considerations are described below.
income tax accounting,
financial statement disclosures,
Payment Protection Program,
The COVID-19 pandemic has resulted in one of the most rapid changes to the current economic environment the world has ever experienced. Restrictions on travel abroad as well as stay-at-home orders from a significant number of states and local jurisdictions within the United States have been implemented to reduce the spread of the virus. These restrictions are also affecting the business operations of entities throughout the country. The significant volatility in the stock market provides a frequent visual depiction of the rapidly changing future expectations for public companies as well as their privately owned peers.
financial statement preparation
The Financial Accounting Standards Board (FASB) recently issued Accounting Standards Update 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15 requires management to evaluate whether substantial doubt exists that an entity will be able to continue as a going concern and defines, for the first time in US GAAP, the key terminology and responsibilities of management related to an entity's ability to continue as a going concern.