Title: Financial reporting considerations in response to the COVID-19 pandemic: empirical evidence from the UAE accounting professionals

Authors: Riham Muqattash; Mohamed Chakib Kolsi; Ahmad Al-Hiyari

Addresses: College of Business, Al Ain University, Abu Dhabi, UAE ' Dubai Business School, University of Dubai, United Arab Emirates & The University of Sfax, Tunisia ' College of Business Administration, University of Khorfakkan, Sharjah, United Arab Emirates

Abstract: The COVID-19 pandemic and its economic ramifications have heightened the need for investors and other stakeholders to have access to higher quality financial information. In this study, we explore the impact of the current pandemic on firm value and financial reporting in relation to the International Financial Reporting Standards (IFRS) from the viewpoint of accounting professionals in UAE. Mainly, we use a survey-based questionnaire targeting auditing firms. We adopt a qualitative approach based on the principal component analysis (PCA). Results indicate that the COVID-19 pandemic significantly delayed financial reporting and releases (both annual and interim reports), and adversely impacted revenues recognition, net profit, borrowing terms including credit rates, and going concerns. Finally, our findings also reveal a negative impact on most of the income statement and financial position rubrics. However, no significant impact is observed on off-balance sheet assets and liabilities due to their uncertainties and contingencies.

Keywords: COVID-19 pandemic; financial reporting delay; firm market value; financial position and net income impact; off-balance sheet items; stakeholders relationship; UAE.

DOI: 10.1504/IJAAPE.2025.144889

International Journal of Accounting, Auditing and Performance Evaluation, 2025 Vol.21 No.1/2, pp.1 - 17

Received: 06 Mar 2021
Accepted: 23 Dec 2021
Published online: 07 Mar 2025 *