ACCESSIBILITY OF FINANCIAL INFORMATION IN RELATION TO CHANGES IN SIZE OF ENTITIES CAUSED BY THE COVID‐19 CRISIS

Abstract

The consequences of the Covid-19 pandemic on the quality and scope of financialinformation prepared by accounting are complex. The scope of the financial statement and theobligation to audit depend on the classification of units based on their size. The required scope isnarrower for micro and small entities than it is for larger organizations. The crisis may haveinfluenced the size of entities and by that their classification and the scope of information that theyneed to disclose. The goal of this article is to verify whether post-pandemic demands forinformation, assuming it will be the same as pre-pandemic, can be fulfilled. The accessibility ofinformation is connected with the level of security of engaging in business activities. Makingchanges in the criteria of an entity’s inclusion as an SME and in its obligation to audit can be onesolution for the problem of insufficient information. The methodology used in this study is analysisof regulations and deductive reasoning. It showed that the effects of the pandemic, particularly theincrease in the number of micro and small entities, can limit the accessibility of information. Thisarticle contributes to the scientific literature by displaying and justifying the need to verify theclassification criteria of businesses and other entities.

Keywords

• SMEs
• financial information
• quality of information
• financial statement