COVID-19: IFRS financial reporting implications

March 27, 2020

Authored by RSM Canada LLP

Joel A. Humphrey, CPA, CA shared this article


COVID-19 is expected to have an impact on entities’ financial reporting under International Financial Reporting Standards (IFRS), including many accounting and disclosure-related areas. Our overview, COVID-19: IFRS financial reporting implications, addresses areas that might be impacted, including the following:

December 31, 2019 year-end financial statements

  • The significant deterioration in economic conditions associated with COVID 19 is generally viewed to have begun in the first quarter of 2020. Therefore, for calendar-year-end entities that have not yet finalized their 2019 financial statements, consideration should be given to disclosure of a subsequent event, including an estimate of the impact of COVID-19 on the financial statements if known and quantifiable, or a statement that an estimate cannot be made.
  • Entities experiencing financial distress prior to or as a result of COVID-19 need to assess whether there is a material uncertainty with respect to remaining a going-concern, or whether the financial statements need to be prepared on an alternative basis of accounting such as the liquidation basis.

Post-December 31, 2019 year-end financial statements and interim reporting

  • Fair value estimates of financial and non-financial assets might be required to be reassessed due to a lack of access to markets or illiquidity in markets.
  • COVID-19 likely will be an impairment indicator for non-financial and financial assets, and entities might be required to estimate its impact on future cash flows and discount rates, among other factors.
  • Financial instruments held by entities may need to have a larger impairment loss provision recognized, with forward looking information, credit risk and other critical historical loss estimates to be reassessed.
  • As a result of actions taken in response to COVID-19’s economic impacts, entities might have to consider the accounting treatment for restructuring costs, government assistance programs, long-term onerous contracts, and variable consideration on revenue contracts, among others.

Please refer to our overview below for further details regarding these and other financial reporting considerations relating to the effects of the COVID-19 virus.  


Download overview

Let's Talk!

Call us at 1 855 363 3526 or fill out the form below and we'll contact you to discuss your specific situation.

  • Topic Name:
  • Should be Empty:

This article was written by Craig Cross, Newton DeNiese, Corey Chan and originally appeared on 2020-03-27 RSM Canada, and is available online at

RSM Canada Alliance provides its members with access to resources of RSM Canada Operations ULC, RSM Canada LLP and certain of their affiliates (“RSM Canada”). RSM Canada Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM Canada. RSM Canada LLP is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms. Members of RSM Canada Alliance have access to RSM International resources through RSM Canada but are not member firms of RSM International. Visit for more information regarding RSM Canada and RSM International. The RSM trademark is used under license by RSM Canada. RSM Canada Alliance products and services are proprietary to RSM Canada.

FCR a proud member of RSM Canada Alliance, a premier affiliation of independent accounting and consulting firms across North America. RSM Canada Alliance provides our firm with access to resources of RSM, the leading provider of audit, tax and consulting services focused on the middle market. RSM Canada LLP is a licensed CPA firm and the Canadian member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.

Our membership in RSM Canada Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise, and technical resources.

For more information on how FCR can assist you, please call us at 1 855 363 3526

Important Notice:

FCR will now redirect you to CCH Portal where your FCR Client Portal login is located.

Share This