Bass, Berry & Sims attorney Jay Knight was quoted in an article published by The Wall Street Journal examining how companies are reporting the financial impact of COVID-19 in disclosures. Regulating bodies have warned they will be closely monitoring disclosures this year to ensure companies are not misleading investors about the true positive and negative financial effects of the pandemic. According to data provided in the article, only one in 10 of the companies that reported an adjusted figure for EBITDA during the three quarters through December 2020 also disclosed adjusted EBITDA because of COVID-19.
As Jay points out, “it isn’t surprising so few companies are doing coronavirus adjustments just because it’s so diﬃcult to quantify some of these items.”
The full article, “Companies Put the Best Face on Covid-19’s Financial Impact,” was published by The Wall Street Journal on February 23 and is available online (subscription required).