By John Bober
Chair, ELFA Financial Accounting Committee
March 25, 2020

Almost every event that impacts business has a financial reporting implication for a company, and the changes COVID-19 has wrought on the business environment is no exception.  When there is an economic downturn, questions naturally turn to whether or not a company’s assets are impaired. Given the severity of the broad COVID-19 impacts on the economy, industries and individual businesses, the major accounting firms have been publishing guidance on some of the accounting and reporting implications that companies need to consider in 2020. The issues addressed are related to loan and lease impairments, lease modifications, securities valuations, subsequent event reporting and other topics.  

Below is a list of some of the publications that have been issued by firms that are members of the ELFA Financial Accounting Committee along with the related links:

• Deloitte: financial reporting considerations
  
  
• Ernst & Young:Technical Line, Accounting and Reporting Considerations for the Effects of the Coronavirus Outbreak
  
  
• Grant Thornton: New Developments Summary, Covid-19 Pandemic:  Accounting and Financial Reporting Considerations
  
  
• KPMG: Financial Reporting Impacts of Coronavirus and Lease Accounting Impacts of the COVID-19 Virus
   
• Moss Adams: COVID-10 Implications
  
  
• PwC: FAQ on Accounting for Covid-19 and Market Volatility

Each of these firms also have general and industry specific information on issues that companies are facing available on their websites.

John Bober is the Chair of the Equipment Leasing and Finance Association’s Financial Accounting Committee and Managing Member of IXL Lease Advisory Services, LLC.