This has been a March of madness. Not because of the NCAA college basketball tournament, which of course was cancelled, but because of the coronavirus (COVID-19) pandemic spreading across the globe. I am sure I am not alone in feeling I’ve aged several years in the past 30 days! If there is one silver lining in all this craziness, it’s that it made us refocus on what’s really important: Faith, family, health, and helping others.
That said, as the first quarter of 2020 draws to a close, there are some fairly significant accounting and reporting issues arising from COVID-19 that need to be addressed. I’ve put together a quick video that provides an overview of what I believe are the main accounting and reporting issues that should be considered, followed by links to helpful resources.
RESOURCES
Impairment of non-financial assets (ASC 350 and ASC 360)
Online training
ASC 350 and 360: Impairment course collection
Relevant blog posts
Auf Wiedersehen, Step 2! Changes to Goodwill Impairment under ASC 350
A Timely Reminder: Accounting for an Impairment Loss under ASC 360
Valuation and impairment of financial assets (ASC 320, ASC 321, ASC 323, ASC 326)
Online training
Credit Losses: Introduction to the CECL Model
Investments: Equity Securities
Relevant blog posts – ASC 326 (CECL)
ASC 326 Credit Losses Changes the Accounting for Credit Impairment
CECL: Can There Be Zero Expected Credit Losses under ASC 326?
ASC 326: Accounting for Purchased Assets with Credit Deterioration
Credit-Impaired Differences Between U.S. GAAP and IFRS
CECL Conundrums: Credit Card Considerations
Implementing ASC 326: Reversion to Historical Data under CECL Model
Analysis of CECL Impacts (ASC 326) – 20 Banks with Varying Results
Relevant blog post – Investments
Overview of Accounting for Investments in Equity Securities (ASC 321)
Accounting for Investments in Equity Securities (ASC 321): Part II
ASC 321 – Investments in Equity Securities, Friend or Foe?
Impairment of AFS Debt Securities under ASC 326
Warren Buffet’s Disdain of ASC 321, Investments in Equity Securities
Going Negative: Accounting for Investments with Negative Yields
Fair value measurements (ASC 820)
Online training
ASC 820: Fair Value Measurements course collection
Relevant blog posts
Fair Value Disclosures Just Got Easier (ASU 2018-13)
Readily Determinable Fair Value Updates and the Use of Net Asset Value
Contingencies (ASC 450)
Online training
Relevant blog posts
Example: Accounting for Unasserted Claims (ASC 450)
Just Say No…To Recording a Gain Contingency under ASC 450 (Old FAS 5)
Accounting for Onerous Contracts under ASC 450 (FAS 5) and IAS 37
Restructuring provisions and termination benefits (ASC 420 and ASC 712)
Online training
Accounting for Restructuring Provisions and Related Termination Benefits
Relevant blog posts
None (yet)!
Other relevant online courses
Unlocking the Puzzle of Accounting for Foreign Currency
ASC 815: Hedge Accounting course collection
Income Taxes: Deferred Tax and Valuation Allowance
Inventory: Overview of ASC 330
Don’t forget to enter the code GOAWAYCOVID19 at checkout to receive 50% off. But hurry! This code expires on April 30.
Other helpful resources
EY’s Technical Line No. 2020-01 Accounting and reporting considerations for the effects of the coronavirus outbreak March 12, 2020
Deloitte’s Financial Reporting Alert 20-1 Accounting, Disclosure, and Internal Control Considerations Related to Coronavirus Disease 2019 March 5, 2020
PwC’s The quarter close: A look at this quarter’s financial reporting issues March 24, 2020
KPMG’s Financial Reporting Podcast: Coronavirus March 24, 2020
The AICPA Center for Plain English Accounting published Consequences of COVID-19 Financial Reporting Considerations March 18, 2020
I am confident that life will return to normal, and when it does, I think we should throw a giant party (and I figured out what to do with all that extra toilet paper)!
Stay safe. Stay healthy. Stay at home!
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