City fears over delayed results grow due to new lockdown
Financial watchdogs are on standby amid fears that a number of listed companies will not be able to report their results on time due to Covid-related disruption.
The Sunday Times reported that a group of the regulators will release a statement within days telling firms to communicate quickly if they expect to have difficulty getting their figures out.
The concerns come at one of the busiest times of the year for auditors, with many firms’ financial years coming to an end in December.
Now, with schools once again shut, firms are facing extreme pressure on their resources, as well as a huge backlog of work not yet completed.
During last spring’s first lockdown, companies were given an extra two months in which to finalise figures amid the immense pressure on resources.
Although that guidance still stands, further clarification is expected due to the change of circumstances.
Directors are also trying to work out whether they can reassure the market with “going concern” statements, given the uncertainty over the length that restrictions will go on for.
A “going concern” is a business that is assumed will meet its financial obligations when they fall due, usually for a period of 12 months.
Prior to the closing of schools, KPMG’s head of audit Jon Holt said: “There will be more cases where companies push back the announcement of their results … and auditors need to delay their opinion.”