Coronavirus (COVID-19): Top 5 Accounting Issues and Resources
Coronavirus (COVID-19): Top 5 Accounting Issues and Resources

Coronavirus (COVID-19): Top 5 Accounting Issues and Resources

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.


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

Contingencies and Guarantees

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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This post is published to spread the love of GAAP and provided for informational purposes only. Although we are CPAs and have made every effort to ensure the factual accuracy of the post as of the date it was published, we are not responsible for your ultimate compliance with accounting or auditing standards and you agree not to hold us responsible for such. In addition, we take no responsibility for updating old posts, but may do so from time to time.

Fair Value
COVID collection

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