ABSTRACT
The head of global financial reporting policy at the CFA Institute, Sandy Peters, warns that financial statement users should exercise significant skepticism of management's methods, techniques, and potential creativity in reporting results, following COVID-19 (Bary, 2020). During extraordinary times, the role of professional judgment and discretion becomes more pronounced, as management is forced to make projections with limited precedent. [...]some experts predict that management may be overly generous in their bad debt reserves (V. Burca, D. Mates, O. Bogdan, "Exemplifying the Effect of Big Bath Accounting in the Pandemic," Ceccar Business Review, The Body of Expert and Licensed Accountants of Romania, https://doi.org/10.37945/cbr.2021.02.01, February 1, 2021). Many employees have embraced remote work and have no intention of ever permanently returning to the office. [...]companies looking to lower overhead and administrative costs may be looking for smaller office buildings or locations where space sharing can be optimized. Many holders of lease agreements and long-term contracts will be looking to negotiate new terms, if they have not already. Because the market impact remains unclear, estimating losses with any degree of accuracy could