Disclosure of the COVID-19 pandemic impact on companies' financial reporting as a condition of its transparency

Abstract

Subject. This article discusses the presentation of transparent IFRS reporting that details the COVID-19 pandemic impact on all areas of the company's activities. Objectives. The article aims to structure, systematize, and evaluate the quality of information on the COVID-19 pandemic impact on the performance of Russian companies presented their IFRS reporting in 2020. Methods. For the study, we used the methods of content analysis, quantitative and systematic analysis, and grouping. Results. The article consists of two parts: theoretical and empirical ones. The theoretical part substantiates the need to disclose the COVID-19 pandemic impact on companies, and it defines the areas of such disclosures. The empirical part assesses the quality of disclosure in the Interim IFRS reporting of fifty domestic public companies of twelve business types. Conclusions. All the companies studied have in one way or other disclosed data on the pandemic impact on their performance and/or financial situation in the Financial Reporting Notes, but overall the quality of such disclosures should be considered poor. However, not all of the companies sampled were affected by the pandemic. In their IFRS reporting, some of them reflected the positive impact of COVID?19 on the development of online commerce and as a result, on the increase in sales.