IOSCO issues Public Statement on Financial Reporting and Disclosure during Economic Uncertainty

The International Organization of Securities Commissions (IOSCO) has issued a Public Statement on Financial Reporting and Disclosure during Economic Uncertainty.

The Statement notes that factors such as supply chain challenges, on-going impacts of the COVID-19 pandemic, evolving impacts of the conflict in Ukraine, escalating energy supply shortages and costs, inflationary pressures, rising interest rates etc. can increase economic uncertainty. These global challenges may result in increasing estimation uncertainty for those responsible for financial reporting.

The Statement encourages issuers to carefully evaluate how economic uncertainty and changes in assumptions affect amounts reported in the financial statements, including but not limited to the following:

• Going concern
• Events after the reporting period
• Updating and assessing significant judgments, estimates and estimation uncertainty
• Cybersecurity risks
• Non-GAAP financial measures

The Statement also discusses considerations for auditors and audit committees in times of economic uncertainty.

The Statement may be accessed here.