The Coronavirus 2019 (COVID-19) pandemic is affecting many industries and has caused a major economic downturn in major financial markets. Many industries are facing challenges in dealing with the financial effects from COVID-19. From travel to hospitality, these industries have been hit hard by the restrictions (e.g shelter in place, non-essential business closures and school closures) imposed by regulatory and organizational leaders.

As this pandemic spreads, businesses will continue to experience economic downturn generally associated with historical economic downturns. These experiences include but not limited to, financial market violatility, erosion of market value, liquidity concerns, increase in unemployment, reduction in production due to supply and demand, detoriating credit, declines in consumer discretionary spending and continued government intervention and other restructuring conditions. The continuation of these conditions adversely affects the financial condition of an entity and its financial results.

The Financial Reporting Alert discusses key accounting and financial reporting considerations related to COVID-19. These topics will vary by industry and entity but there’s a belief that these topics will be the most challenging during the spread of this pandemic.

• Preparation of forward-looking cash flow estimates- The use of forward looking information is persuasive in a way that measures the impairment of non financial assets, including good will, the realiziability of deferred tax assets and continued ability to meet the standards of a going concern.

• Entities will have to prepare good faith estimates accompanied with comprehensive documentation to support those estimates. Entities will also have to provide robust disclosures detailing the measurements used to determine those estimates.

• Recoverability and Impairment of Assets- One of the many challenges of using forward looking information is the measurement of long lived assets, intangibles and goodwill. These non financial assets use recoverability and impairment test that rely on prepared cash flow statements that are based on uncertainties. Impairment measurements will be assessed using a new cost basis. Once impairment amounts have been determined, the amounts cannot be reversed in the future, if there are unforeseen favorable developments.

• Accounting for financial assets- There’s been a stark decline in fair value of financial assets, particularly equities. Also, the ability for debtors to comply with loan terms has been adversely affected as well. Entities will have to determine how to apply impairment and loss recognition guidance.

For more information on COVID-19 and its affects related to business activities, please visit: www.sba.gov

Our Purpose

StaQuity Financial’s purpose is to unlock the financial integrity in our clients. Fulfilling this purpose by partnering with individuals, businesses, public and private organizations to offer comprehensive Accounting, Tax, Asset Management and Financial Planning services. StaQuity is built on the premise of individuals and businesses holding stakes of interest in varying aspects of life and or business and within those holdings there’s a volume of equity ascertained that creates either a positive or negative outcome. StaQuity strives to implore strategies to protect those stakes to ensure outcomes that are favorable to our clientele’s financial success and growth in equity.

Our Vision

Our vision is to build a service that gives our clients an intimate client to company relationship but provides services that are compatible yet unique to the megabanks/financial services companies. Using industry analysis that include but not limited to: financial newsletters, Financial consultations, and economic trends. We plan to maximize our business in a conservative, risk conscious environment. We offer accounting services that mirror GAAP rules, but also are in line with business needs and promote long-term growth.  We believe in long term investments that stay the course and contend with market volatility. We believe in providing our individual and business clients with accounting and investment strategies that will increase profit and ensure growth toward personal and business goals.