Hot Topic | March 2020


COVID-19 impacts on the accounting for financial instruments

The Q1 2020 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.


  • Companies that hold financial instruments

Related dates

  • Effective immediately

Report contents

  • Background
  • Expected credit losses
  • Financial guarantees
  • Debt modifications and loan covenants
  • Derivatives: Normal purchases normal sales scope exception
  • Hedge accounting
  • Equity method investments
  • Fair value measurements
  • Investments in debt and equity securities


Spotlight on contributors

Mark Northan

Mark Northan

Partner, Dept. of Professional Practice, KPMG US

Daniel Vance

Daniel Vance

Senior Manager, Dept. of Professional Practice, KPMG US



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