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Abstract:
Purpose: The objective of this article is to evaluate the quality of the presented content concerning the impact of the COVID-19 pandemic on continuing activities of selected companies listed in Warsaw Stock Exchange. Design/Methodology/Approach: In the first part we applied critical review of subject literature and the monographic method. In the second part, the content analysis method was used, and the basic source material were the financial statements - annual for 2019 and interim for 2020. Findings: Research demonstrates that disclosures of events following the balance sheet date did not allow users of financial statements to assess the risk associated with the impact of COVID-19. Some companies completely ignored the risk related to the pandemic in their financial statements, and in some cases the scope of disclosures is symbolic. Practical Implications: Indicating the gap between the expected and actual scope of disclosures regarding the consequences of the pandemic in financial statements, which are the primary source of information about a listed company that are further authenticated by an auditor. Originality/value: Demonstration of the insufficient level of disclosures regarding the impact of the pandemic on the financial condition and performance of the entities audited, including a lack of numerical analyses of its impact on the entity's ability to continue operations, and the valuation of its assets and liabilities.
Keywords: Events after the reporting period, pandemic, quality of financial statements, COVID-19, European Union.
1.Introduction
The 2020 COVID-19 pandemic had a strong impact on the economy of almost all countries in the world. In many of them, the wave of state administered aid for entrepreneurs made the economic crisis less profound. Negative consequences will be experienced only by entities operating in industries directly affected by the lockdown (Grima et al., 2020; Khan et al., 2020).
Therefore, one could expect that the alterations in demand, resulting partly from the job market's destabilization, will be notable on a macro scale. This may translate into infecting other sectors of the economy that seem to be immune to the pandemic's effects. However, there are also industries, such as medical and IT, that experienced increases in turnover due to the pandemic. It can be expected that the uncertainty related to the crisis will have an impact on financial statements, which are...
