Effects of the COVID-19 pandemic on disclosures in passenger airlines’ financial statements

Ralph ter Hoeven*, Ymke Roosjen

*Corresponding author for this work

    Research output: Contribution to journalArticleAcademicpeer-review

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    This article analyses the impact of COVID-19 on the disclosures of 24 financial statements of passenger airline companies in Europe (including United Kingdom), North America, China (including Hong Kong), Middle East and South America for financial year 2020. This impact is significant in our research sample as evidenced by a total revenue decrease of 60% compared to previous year. We have examined for specific areas whether the airline companies contribute to transparent reporting and useful information to existing and potential investors, regulators, supportive government bodies and other stakeholders following the COVID-19 pandemic. The areas of our research focus on going concern, rent concessions, significant judgements and estimates, impairments, governmental support and the auditor’s report. Our study shows diversity in the extent of transparency in both financial statements and auditor’s opinions. Good financial practices are included and discussed in this study to further stimulate transparency in corporate reporting.
    Original languageEnglish
    Article number75536
    Pages (from-to)397-411
    Number of pages15
    JournalMaandblad voor Accountancy en Bedrijfseconomie
    Issue number11/12
    Publication statusPublished - 16-Dec-2021


    • COVID-19, airlines, state aid, going-concern, key audit matters, significant estimates and judgements, rent concessions and impairments

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