Coronavirus (COVID-19)—impact on annual accounts and reports [Archived]

The following Corporate practice note provides comprehensive and up to date legal information covering:

  • Coronavirus (COVID-19)—impact on annual accounts and reports [Archived]
  • Background
  • Disclosure of principal risks
  • Going concern statement
  • Longer-term viability statement
  • Exceptional items
  • Alternative performance measures
  • What if companies need more time to publish and file their accounts?
  • Financial reporting by quoted companies
  • FRC guidance for reporting in times of uncertainty
  • More...

Coronavirus (COVID-19)—impact on annual accounts and reports [Archived]


This archived Practice Note considered the impact that the coronavirus (COVID-19) pandemic on the preparation and filing of a company’s report and accounts. It has not been updated since May 2022.

Disclosure of principal risks

The Companies Act 2006 (CA 2006), the UK Corporate Governance Code (UKCG Code) and the Disclosure Guidance and Transparency Rules (DTRs) contain overlapping requirements for companies to disclose the principal risks facing their business in their annual and interim financial reports:

  1. the CA 2006 requires all UK incorporated companies (except for small companies) to prepare a strategic report for each financial year of the company. This report must include, among other things, ‘a fair review of the company’s business, and a description of the principal risks and uncertainties facing the company’

  2. the UKCG Code requires the board of directors of a premium listed company to carry out a robust assessment of the company’s emerging and principal risks and to confirm in the annual report that it has completed this assessment, including a description of its principal risks, what procedures are in place to identify emerging risks, and an explanation of how these are being managed or mitigated

  3. the DTRs require that the annual financial report and the half-yearly report contain a description of the principal risk and uncertainties facing the issuer

The UKCG Code also

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