Shuttered operations. Production stops. Supply chains interrupted. Each of these could have a significant impact on businesses and nonprofit organizations, including their cash flow and revenues. Many organizations have financial statements about to be issued that may need to disclose how these issues are impacting them.
On March 18, 2020, the AICPA put out a report Consequences of COVID-19: Financial Reporting Considerations which addresses several considerations for businesses and financial statements. (AICPA’s Center for Plain English Accounting)
The report covers:
- Subsequent events
- Accounting estimates
- Asset impairment
- Loss contingencies
- Going concern
- Variable consideration under FASB ASC 606, Revenue from Contracts with Customers
Learn more in this report, which has been made public under these unique circumstances.
Our team understands these new concerns and we are here as your trusted advisor to help you navigate the road ahead. Call or email us and we’ll get back with you soon.
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Our firm provides the information in this article for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this blog are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability and fitness for a particular purpose.
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