Companies may face financial difficulties for many reasons. Macro economic events, technological transformation, industry trends, and unexpected disruptive events can negatively impact current and projected cash flows.
For many companies, COVID-19 has caused a decline in demand, as well as challenges sourcing raw materials, resulting in revised projections, and the need to consider strategic alternatives.
Clearly communicating the impact of financial stress is critical to meeting the financial statement needs of users. The specific activities a company plans to take, and the expected outcome, can impact the financial statements in current and future periods.
Some of the financial reporting issues companies are facing today include whether to:
PwC has publications addressing these and other challenges your company may be facing which are discussed in the PwC guide library.
