Contemporary Issues in Accounting: Covid-19 Pandemic and Financial Reporting - Implications and Challenges in Nigeria

Abstract

This study looks at financial reporting issues and implications that have arisen as a result of the Covid-19 outbreak in Nigeria. The study spans the years 2019 to 2021, with the Covid-19 beginning in 2019 and continuing to this day. Using contents analysis of publicly available archive documents, this study uses an exploratory research approach to look into the consequences and issues of financial reporting in Nigeria as a result of the Covid-19 outbreak. The research is entirely based on secondary data. Searches in publicly available sources yielded the literature. In terms of financial reporting and the Covid-19 epidemic, literature from non-serial journals, government reports, and conferences has been included, especially if they have been cited by other sources. The majority of the empirical findings revealed that the Covid-19 pandemic has an impact on financial reporting in Nigeria in the areas of revenue recognition, non-financial asset impairment, goodwill impairment, inventory valuation, fair value measurement, hedge accounting, and provisions for bad debts. Furthermore, the pandemic has an impact on going concern disclosures and audit evidence since they are regarded grey areas for management and auditors, requiring a lot of judgment in dealing with them. The study finds that, because the conditions of covid-19 on financial reporting are unpredictable, management should reveal going concerns and apply professional skepticism when preparing financial reports in order to preserve the quality of financial reports to users. Management should reconsider the accounting for fair value estimations, predicted credit losses, impairments, and other assets, according to the report.