Weathering the Storm Part 7: Accounting & Reporting for the Quarter

  |  June 3, 2020

As companies navigate this crisis during their current reporting quarter, here are some accounting and disclosure topics to keep in mind:

  1. Impairment: consider any trigger events for impairment affecting assumptions in your FV models related to long-lived assets, goodwill and other intangible assets
  2. Revenue: consider updating estimates for changes in variable consideration & collectability
  3. Insurance Recoveries: assess accounting for insured losses and business interruption
  4. Lease/Rent Concessions: evaluate lease modification accounting when receiving rent abatement or incentives
  5. Debt: monitor for compliance, defaults, re-classification and modifications/extinguishments
  6. Income Taxes: expected impact to forecasts affecting valuation allowance, NOLs and tax rate
  7. Disclosure: consider updating the following:
    • Risk factors, MD&A, description of business & changes in ICFR
    • Risks & uncertainties
    • Subsequent events
    • Going concern

Contact us to discuss these or other issues that may be impacting your company during this difficult time.

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