The Impact of COVID-19 on Accounting and Financial Reporting: An Analysis of Global Contributions

Author

Ahmed Helmy Gomaa
Ehsan Saleh Almoataz

Abstract

The purpose of the study: Explain the impact of COVID-19 on accounting
and financial reporting by describing the analysis and evaluation of the global
contributions of organizations, bodies, institutes, commissions, European banks
and professional accounting firms and firms and in light of the application of
IFRSs and the pandemic conditions, which are likely to last for a longer period.
Design / Methodology / Approach: This study is based on the use of the
inductive deductive approach, as the study looks at the accounting issues most
affected by the Covid-19 pandemic by describing, analyzing and evaluating the
reality of studies, bulletins and alerts issued by organizations and bodies,
institutes, committees, European banks and international professional
accounting offices and companies, with the aim of extrapolating the effects of
pandemic events Covid-19 on accounting and financial reporting, in light of
IFRSs and pandemic conditions that may last for longer accounting periods.
Findings: Analysis and evaluation of the effects of the Covid-19 pandemic
on accounting and financial reporting, and their implications for the application
of IFRSs and the work of financial reporting prepareing, revealed the following:
(1) There is a very significant impact on leasing contracts, which necessitated
the IASB to introduce amendments to the IFRS (16) and there is also a
significant impact of pandemic events Covid-19 on events after the financial
reporting period, whether events that require adjust or not that require adjust
but require disclosure, and management’s assessment of the company’s going
concern to the prolonged period of the pandemic and uncertainty as basic
factors and also on measuring fair values and the Impirment in the value of
non-financial assets, especially financial instruments and investments Real
Estate to ensure that the values reflect conditions at the balance sheet date
based on unobservable inputs, and also on expected credit losses of lenders
and borrowers.
(2) There is, to some extent, an effect on revenue recognition due to the
modification of rights or obligations applicable under a contract with a client
International Journal of Accounting and Management Sciences
ISSN: 2832-8175 (Special Issue – Arabic – September 2022)
https://scipubhouse.com/?page_id=1035
تأثير جائحة كوفيد 91 على املحاسبة واعداد التقاريراملالية……………………………… جمعة واملعتاز )ص 46 – 19)
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as a price concession due to the pandemic, taking into account that the IASB
has voted for a general extension to all private companies and non-profit
companies that have not yet issued their financial statements and the
effective date of application will be for fiscal years beginning after 15
December 2021.
(3) There is little impact on hedging transactions as the Covid-19 pandemic may
reduce the likelihood of an expectation of a hedging transaction or affect its
timing, and also on deferred taxes on assets where there are some doubts or
uncertainty at the end of the year in estimating whether there is Sufficient
future profits are subject to tax, as well as government support, possibly due
to the conditions that the state may set for obtaining support.
Originality / value: This paper sheds light on the current and expected
effects of the events of the Covid-19 pandemic on accounting and financial
reporting in listed companies by describing, analyzing and evaluating the
accounting contributions of organizations, bodies, councils, institutes,
committees, professional associations, European banks and international
professional accounting offices or companies since the time of the pandemic at
the end The year 2019 and the beginning of 2020 – until now – and in light of the
application of IFRSs issued by the IASB and the pandemic circumstances that
may last for a longer period.

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