As part of our continued communication regarding the impact of the COVID-19 global pandemic, we would like to remind our valued audit and review engagement clients that this situation will also impact reporting and disclosure requirements. Management will need to consider additional disclosure in their entity’s financial statements.

Canadian financial reporting standards require that entities report information about events that occur after the year end date, but before the release date of the financial statements that will, or may, have a significant effect on the future operations of the enterprise and could influence the economic decisions that users make on the basis of the financial statements.

Accordingly, the additional disclosures may comprise, but are not limited to, information on the impact on service and production capability, supply chain availability, ongoing revenue levels and the valuation of assets including accounts receivable.

CPA Canada has created a resource hub to provide practitioners and their clients with related guidance. This hub can be accessed here.

At Shimmerman Penn, our partners are contacting clients to discuss the appropriate financial statement disclosures which suit your business or organization. For audit and review engagements currently underway, we anticipate that – at a minimum – there will be a subsequent events note added to the financial statements. Please contact us if you have any questions.

The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Accordingly, the information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. While we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Again, no one should act upon any information contained herein without seeking appropriate professional advice after a thorough examination of their particular situation.