Executive Director, Dept. of Professional Practice, KPMG US
The ongoing economic downturn caused by COVID-19 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 the recent economic disruption resulting from COVID-19 may impact accounting and financial reporting for various financial instruments.
This latest update provides guidance on hedge accounting when a modified loan or debt instrument, or the interest payments thereon, is the hedged item in a hedging relationship.
Expected credit losses
Loan modifications (lender accounting)
Debt modifications and loan covenants
Derivatives: Normal purchases normal sales scope exception