After the outbreak of the Coronavirus pandemic, spread all over the world, all aspects of human life, health, economics and tourism were clearly affected. This article will briefly address the negative effects of the virus on accounting and financial reporting around the world. The International Monetary Fund has announced that the world has entered into a recession that may be worse than a recession in 2009. This global economic recession will affect the accounting profession with all its aspects, operations and outputs.

On the internal level of the companies, accountants will have a lot of hard and critical work at the same time in determining the companies’ fate where the companies’ ability in the coming days to predict cash flows, and assess the continuity of the company ; debt covenants; hedging and financing; low value of assets; the company's obligations and estimating revenue. Not only that, but companies also have a responsibility of the accounting profession to disclose as well as companies' ability to continue operating due to low economic activity.

The Novel COVID-19 virus affected on many applications of the international standards for example, the International Standard IAS 36, which determines the assessment of assets in companies. IAS 36 requires the assessment of the goodwill, intangible and non-expendable assets to indefinite time as a minimum each year and other non-financial assets when there is an indication that these assets have decreased in value. When there is an indication that these assets have been depreciated. It is likely, that the impact of lower economic activity and revenues affects almost any entity and may also indicate a depression of the assets. In addition, IAS 2 determines the inclusion of fixed production costs in inventory cost based on normal production capacity. Lower production may affect to what extent the public expenditure can be included in the cost of inventory. Entities should assess the importance of any writing off processes and whether they require disclosure in accordance with IAS. However, as a result of the lower economic activity by following the steps taken to control the virus, it will lead to the decrease in the value of sales and revenues of the company.

As such, companies will face difficulties in applying IFRS 15, which determines the measurement of revenue from goods or services already delivered, especially the measurement of change in the value of goods and services. Management should reconsider its estimate of compensation and whether the recognition limit has been met.

As for governmental aids for the companies, the international standard (IAS20) set for corporate governance to take into accounts whether this type of aids received from the government fulfils the definition of the government grants in IAS 20. The guidance in IAS 20 should be applied to governmental grants.

Finally, corporate governance must into its consideration the evaluation of inventory value, which may cause an essential change next year. Furthermore, the Novel COVID-19 virus could affect the results, balance sheet, cash flow, taken steps to control the spread, as well as important rules that were not required before, particularly with regard to expected credit losses and the updates of the important estimate.