Asset impairment: the quality of disclosures in financial reporting amidst the pandemic

Relevance. The deterioration of economic conditions both in individual countries and worldwide, due to the spread of coronavirus infection and the imposition of strict quarantine restrictions resulted in notable changes in the financial and business sectors. This makes it relevant to investigate this issue. Purpose. The main purposes of the study are to examine the issue of changes in the quality of information to be disclosed in connection with financial reporting, specifically the impact of the global pandemic on this procedure. Additionally, the study aims to determine the extent to which such dynamics have a positive or negative effect on the implementation of financial reporting. Methodology. Various methodological approaches, which have both theoretical and more practical aspects, such as the theoretical and methodological approach, analysis, synthesis, comparative analysis, and the analysis of scientific literature were used in the study, which helped to investigate the above-mentioned issue and achieve the research objectives. Results. In the process of examining the aspect, the following results were identified, the theoretical background to the issue was reviewed, in particular the concepts, the main components of the asset impairment phenomenon, and the financial reporting and disclosure procedures were highlighted, the main features and changes in the industry caused by pandemic were identified. Conclusions. Alternative approaches to financial disclosure have been formulated which may help to prevent the occurrence of negative consequences for legal persons due to neglecting such information, or even withholding such information. Keywords: asset carrying amount; asset recoverable amount; asset sensitivity analysis; operational continuity; coronavirus infection; reduction in asset value