Covid-19 emergency: the effect on financial statements disclosure
Italian regulation provides that notes to financial statements must contain, inter alia, information about “financial and economic effects of significant events occurred after the end of financial year”.
These rules in matter of financial statement disclosure could impact on drawing up financial statements for financial year closed at 31.12.2019, in view of COVID-19 emergency which came forward during the first months of the year 2020.
COVID-19 emergency will must be considered a fact happened after the end of financial year which will not change financial statements item at 31.12.2019. However, it will must be considered exceptional occurance subject to adequate disclosure.
It will be necessary to describe the effects of this occurence on company’s financial and economic situation, according to examination of the evolution of data during the first months of the year 2020.
It will also be essential to consider the COVID-19 possible impact on company’s going concern assumption.
Please do not hesitate to reach out to our Professionals in case you need further clarifications on the above.