Covid-19 – latest developments for corporate practitioners

The following guidance and materials may be of interest to companies in light of the Covid-19 pandemic.

Corporate reporting

• FRC thematic review – The Financial Reporting Council (FRC) has published a thematic review on the financial reporting effects of Covid-19. The report seeks to provide guidance for companies when preparing their annual and interim financial reports by identifying areas where disclosures affected by Covid-19 can be improved, as well as providing examples to show the level of detail in some of the better disclosures. Areas discussed in the report include going concern and viability; cash, liquidity and covenant compliance; dividends and capital management; the strategic report; alternative performance measures; significant judgements and estimates; and impairment issues.

Other materials

• Recapitalisation of UK companies– The CityUK Recapitalisation Group (RCG) has published a report Supporting economic recovery: recapitalising businesses post Covid-19. The report, to which we contributed, sets out a series of options for converting, restructuring and repaying the projected £35 billion in unsustainable debt that could result from Covid-19 loans.
• Consolidated Covid-19 corporate update – We have published a consolidated Covid-19 update briefing which summarises the major pieces of legislation and guidance that have been published in relation to UK corporate law over the last few months in light of the pandemic.
• Disputes risks – The pandemic has led to unprecedented disruption to economic activity on a global scale. Inevitably, this will lead to disputes. We have published a new Disputes Risk guide which looks at a number of areas in which we anticipate that disputes may arise as a result of the pandemic or associated disruption. These include contractual disputes; class actions, such as shareholder, employee, competition or data breach claims; insolvency litigation, including claims brought by creditors and officeholders; and judicial review of governmental decisions or actions.

For further Covid-19 related publications, see our COVID-19 Hub.