Coronavirus and FRS 102: financial reporting

It’s quite clear that coronavirus is a devastating, exceptional and extraordinary worldwide event which will have a significant financial impact on many entities. The financial reporting implications of coronavirus, together with the Government support, could prove challenging. 

We have provided analysis on a number of areas detailing:

• what FRS 102 currently says; 
• the practical impact and interpretation for preparers of financial statements; and 
• our advice to entities. 

Whilst the articles will inform accounting work they have been written in the generality – each entity will have unique issues which must also be considered.

The enclosed articles were last reviewed on 9 November 2020, which follows the FRC amending FRS 102 and 105 for leasing arrangements, and the government extending the Coronavirus Job Retention Scheme and deferring the Coronavirus Job Retention Bonus and Coronavirus Job Support schemes. Whilst each article has been reviewed, amendments are limited to:

• Events after the reporting date
• Dividends and other distributions
• Small and micro entities
• Accounting for Government grants including the job retention scheme
• Leasing arrangements
• CBIL and Bounce Back Loan and Future Fund schemes
• Provisions, onerous contracts and insurance recoveries