Accounting Alerts

COVID-19 Outbreak: Accounting Implications

The spread of corona virus (COVID-19) has caused economic shock on a global scale resulting in many countries which have drastically acted to mitigate or suppress the rapid contagion by implementing international travel restrictions (including closing of borders), community or national quarantine measures and suspending business operations.  In an effort to curb the impending impact of COVID-19, the Philippine government has declared on March 8, 2020 a state of public health emergency throughout the country followed by the implementation of community quarantine measures within the National Capital Region on March 15, 2020 which was extended to cover the Luzon area in an enhanced quarantine procedures effective March 17, 2020.  These quarantine measures are effective until April 14, 2020 subject to continuous monitoring and assessment of the situations.  Other cities and provinces outside Luzon have been implementing substantially the same quarantine measures in a limited scope. 

As COVID-19 becomes more widespread and with uncertainties it brings as to the extent of its impact to the business sector, it is important that management considers the accounting implications of the outbreak, including its impact on the preparation of the entity’s financial statements.

This publication provides a summary and reminder of the financial reporting requirements that may be relevant in the preparation of entity’s financial statements with reporting period ended December 31, 2019 and subsequent reporting periods, focusing on certain areas that may commonly be applicable to the affected industries and companies.  This covers comprehensive discussion on matters related to:

  • industries and entities likely impacted by COVID-19
  • accounting considerations on areas involving subsequent event review, going concern assessment and other accounting topics
  • implications on relevant regulatory reporting (i.e., SEC and BSP)

 

See attached Accounting Alert for the complete details of this publication.