International Organization of Securities Commissions Publishes Statement on COVID-19 Disclosure for Issuers
05/29/2020The International Organization of Securities Commissions, the international policy forum for securities regulators, has published a statement on the disclosure standards that securities issuers should adhere to in the context of COVID-19. The statement covers the following issues:
- the impact of COVID-19 on amounts recognized, measured and presented in financial statements: IOSCO recognizes that COVID-19 makes the preparation of financial statements difficult but expects issuers to use the best available information to inform their decisions;
- the importance of transparent and complete disclosures: issuers should not limit disclosure to boilerplate discussion of COVID-19, but should explain how the pandemic impacts (or may impact) their financial performance; issuers should also include greater transparency on certain areas, including assessments of the impact of COVID-19 on historical financial and non-financial information, going concern assessments and significant judgements on goodwill, fair value measurements and impairment of financial assets;
- the use of non-GAAP financial measures: issuers should be wary of using potentially misleading non-GAAP measures in the context of COVID-19;
- interim reports, which may need to include more detailed disclosure than would typically be included in interim reports given the significant changes in circumstances arising from COVID-19;
- the implications for annual audits: investors may rely even more than usual on the additional information provided by auditors in light of COVID-19; auditors are reminded of their responsibilities to report on Key Audit Matters and to modify their reports when relevant standards require them to do so; and
- extension of filing deadlines: issuers should balance the needs of investors against their responsibility to provide timely and comprehensive information and should consider informing the market about any reasons for delays to deadlines.
View IOSCO's statement on COVID-19 disclosure for issuers.
Details of other regulatory responses to COVID-19 are available on our COVID-19 Research Center.
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