We're sharing with you a selection of COVID-19 accounting and reporting news we're following from the standard setters and regulators. Receive this news along with our insights on COVID-19 in your inbox each Friday by subscribing to PwC's Accounting weekly news.
On May 28, the IASB issued an amendment to its leases guidance to make it easier for lessees to account for COVID-19-related rent concessions.
On April 28, the FASB staff issued a Q&A document addressing the application of the cash flow hedge accounting guidance in ASC 815 to circumstances impacted by the COVID-19 pandemic.
On April 21, the FASB issued an exposure draft that would defer the effective date of ASC 606, Revenue from Contracts with Customers, and ASC 842, Leases, for certain entities. Comments on the proposal are due by May 6.
The GASB also published an emergency toolbox to help governments quickly identify the GASB standards applicable to issues they are facing in the current environment.
On April 10, the FASB staff issued a Q&A document addressing several questions related to the application of the lease accounting guidance (both ASC 842 and ASC 840) for lease concessions made as a result of the effects of the COVID-19 pandemic.
SEC Chief Accountant, Sagar Teotia, released a statement reiterating the importance of high-quality financial reporting for investors and stakeholders during this turbulent period. Chairman Jay Clayton and Division of Corporation Finance Director William Hinman also released a statement urging companies to provide as much information as practicable regarding their current financial and operating status, as well as their future operational and financial planning.
As a result of the COVID-19 pandemic, the Governmental Accounting Standards Board has added a project to consider deferring the effective dates of Statements and Implementation Guides effective for reporting periods beginning on or after June 15, 2018. This would include GASB Statement No. 84, Fiduciary Activities, and GASB Statement No. 87, Leases, among others. The GASB plans to issue an Exposure Draft of the effective date deferral in April, with a final standard expected in May 2020.
On March 27, the IASB published a paper responding to questions regarding the application of the IFRS 9 expected credit losses model during this period of economic uncertainty arising from the coronavirus pandemic.
Tune in to our IFRS technical update webcast, airing on April 8, to hear a panel of PwC partners discuss the accounting implications of COVID-19. Register here.
On March 13, the SEC announced guidance regarding conducting annual meetings given COVID-19 concerns. According to the announcement, the SEC staff has received inquiries regarding compliance with federal proxy rules for upcoming annual meetings in light of health, transportation, and other logistical issues due to COVID-19.
Companies are required to hold annual meetings of security holders under state law. Some are also required to comply with federal rules, which require, among other things, delivery of proxy materials.
The guidance issued by the SEC staff addresses the following issues:
On March 4, the SEC provided companies that are unable to meet filing deadlines due to COVID-19-related circumstances with an additional 45 days to submit certain disclosure reports (e.g., Forms 10-K, 10-Q, 20-F) that would otherwise have been due between March 1 and April 30, 2020. The relief is conditioned on a number of factors set out in the SEC’s order.
The SEC also provided guidance for how the relief will impact certain other securities-related areas, such as eligibility to use Forms S-3 and S-8 and the availability of the SEC’s existing late filing notification requirements (Exchange Act Rule 12b-25) for annual and quarterly reports that are subject to the 45 day extension but are not able to be filed by the extended due date.
Also on March 4, the staff of the SEC’s Division of Investment Management published a statement extending and expanding certain prior no-action positions relating to in-person fund board voting requirements under the Investment Company Act of 1940 given that the coronavirus may impact in-person attendance. The positions described apply to fund board meetings until June 15, 2020.