The Covid-19 pandemic also affects accounting information: disclosures and business continuity in the face of the crisis

Abstract

This reflective article analyzes the impact of the pandemic in relation to the assumption of the going concern as the basis of accounting information systems. It begins with a review of regulatory adjustments stemming from the Covid-19 pandemic, related to financial information: commercial and tax regulations, accounting standards, and assurance standards. Subsequently, 32 companies from different economic sectors were examined to determine if, based on the information presented in their financial statements, an external user could identify the impact of the pandemic and the measures taken by the company to ensure its continuity, in accordance with the regulatory guidelines defining the concept of going concern. This reflection led us to consider some key elements for companies to use accounting information in the decision-making process during times of crisis, elements that are not always found in general purpose reports. Considering that society at large is the user of financial statements, it was concluded that such information is not sufficiently comprehensive or relevant to influence user decisions; more analysis and interpretative support must be incorporated so that the user has a clear idea of the financial situation and the impact of the Covid-19 pandemic on businesses. Finally, it was noted that small businesses should improve the quality and use of this information to support their decision-making processes.