Updated: The ongoing economic downturn caused by the COVID-19 pandemic may have an impact on the accounting for certain financial instruments. KPMG highlights key reminders for companies to consider in the current economic environment.
We believe that the recent economic disruption resulting from the COVID-19 pandemic may impact accounting and financial reporting for various financial instruments.
This latest update provides additional guidance for expected credit losses, loan modifications, debt arrangements, derivatives and hedge accounting, investments in debt and equity securities, and equity method investments.
Expected credit losses
Loan modifications (lender accounting)
Debt modifications and loan covenants
Derivatives: Normal purchases and normal sales scope exception