Accounting for the Effects of COVID-19 in Financial Books and Reporting

Abstract

The global pandemic over the past two years has compelled all entities to operate under altered social and economic conditions. Undoubtedly, the pandemic has significantly influenced the functioning of economic units. The objective of this article is to demonstrate the impact of COVID-19 on accounting books and financial reporting, with particular reference to the recommendations of the Accounting Standards Committee in Poland. The article is based on survey research conducted among managers of economic entities and financialaccounting personnel. The surveys were carried out between May and November 2021. The findings reveal that, during the initial phase of the pandemic, entrepreneurs and financial-accounting personel did not anticipate threats to business continuity due to the emerging risks. It was observed that the existing procedures, forecasts, and valuation methods were deemed adequate for the changing socioeconomic
conditions. The recommendations issued by the Accounting Standards Committee in Poland were applied primarily for “ongoing operations” rather than for revising plans, identifying threats, or modifying company procedures.