Handbook: Accounting for economic disruption
Handbooks | July 2025
Our updated in-depth guide explores the accounting for the impact of economic disruption on financial reporting.
Using Q&As and examples, our in-depth guide includes considerations and observations to help guide companies when evaluating the impact of economic disruption on their financial reporting. This edition includes updates reflecting additional considerations during these periods, including new guidance related to the effect of tariffs, potential tariffs and evolving trade policies.
Applicability
- All entities
Relevant dates
- Effective immediately
Navigating the financial reporting implications of economic disruption
Economic disruption may impact companies around the globe at different times and in different ways. In 2025, uncertainty has emerged surrounding tariffs and trade policy as a significant source of disruption. Tariff-related developments can trigger supply chain disruptions, increased costs, pricing volatility and shifts in market demand – potentially affecting multiple areas of accounting and financial reporting.
When faced with economic disruption and the ensuing economic uncertainty it creates, companies must promptly identify potential financial statement impacts and consider the associated accounting and disclosure consequences.
Regulators focus on quality financial reporting during periods of economic disruption, as well as the sufficiency and timeliness of related disclosures. Transparency is at the center of this focus, particularly as it relates to estimation uncertainties and the underlying basis for critical judgments used in financial reporting.
Virtually any financial statement account could face the impacts of economic disruption. Additionally, there are disclosures that may be necessary, such as those related to going concern, impairment, contingencies and risks and uncertainties.
Report contents
- Executive summary
- Revenue
- Financial assets, derivatives and hedging
- Inventory
- Goodwill and indefinite-lived intangibles
- Long-lived assets, leases and equity method investments
- Liabilities
- Compensation and benefits
- Income taxes
- Financial statement presentation, disclosures and MD&A
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Accounting for economic disruption
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