The Impact of Covid-19 on IAS 1 Presentation of Financial Statements

Accuracy and transparency of financial reporting are compromised under conditions of crises and uncertainty. The disruption caused by Covid-19 presents a challenge to firms, regulators, auditors and investors to make meaningful conclusions about financial data. In the absence of clear guidelines, firms and regulators cannot present financial information with consistency and reliability. The study proposes a revised financial statement structure to address the limitations of financial reporting, particularly in the context of Covid-19. The conceptual paper utilizes secondary data and the researchers' expertise to propose a revised financial statement structure. The study finds a need to maintain the standards of financial reporting as per the International Accounting Standards Board (IASB) guidelines, with some changes to the immediate impact of Covid-19. The revised financial statement structure can promote transparency, consistency and reliability in reporting financial information, while keeping these standards. This study is one of the first papers to propose a revised financial statement structure to deal with the current Covid-19 crisis. The suggested modifications can be apportioned to Covid-19 issues, will be beneficial for users in decision making, and can be used to amend current reporting standards.