Responding to the coronavirus (COVID-19)

As the coronavirus COVID-19 continues to unfold, we have created this space to support businesses on how to respond to situations. 

On March 12, 2020, Puerto Rico governor, Wanda Vázquez, issued Executive Order 2020-020 to declare a state of emergency in the island with the purpose of implementing a coordinated plan among all governmental agencies in preventing and controlling the dissemination of this virus and to protect the wellbeing of our citizens.

Moreover, on March 15, under Executive Order 2020-023, the governor declared a 14-day mandatory curfew ordering all citizens to remain in their homes.  This Executive Order also ordered the closure of all businesses and non-essential services in Puerto Rico starting March 15, 2020, at 6:00 p.m. until March 30, 2020, unless otherwise provided.

March 26, 2020 lockdown update – Governor Wanda Vazquez, has amended Executive Order 2020-023 extending the mandatory lockdown from March 31 to April 12, 2020. New measures included in Executive Order 2020 – 029 are:

  • curfew will be observed from 7:00 pm to 5:00 am.
  • people will be allowed to go out according to the last number of their vehicle’s license plate.  Even numbers may transit Mondays, Wednesdays and Fridays.  Odd numbers may transit Tuesdays, Thursdays and Saturdays.
  • Grocery stores will be closed on Sundays.

These aggressive measures were taken to ensure the population stays home as a prevention to spread the contagion.

In our interest to continue providing our clients with a service of excellence and quality, please be informed that our personnel is working remotely from 8:30 am to 5:30 pm - Monday through Friday.  If you need to contact us or additional assistance is required, please write us to kgt@pr.gt.com.  We will be glad to help you.   

 

COVID-19 impact on accounting, financial reporting

Key focus areas for businesses

  • Key focus areas for businesses

    Workforce

    Have measures been put in place to support hygiene and health for your employees, including restrictions to international travel and advice on attending client meetings, site visits and events?

    Do you have a clearly communicated policy on what your people should do if they are feeling unwell?

    What does it mean for colleagues and clients if you suspect a case of coronavirus in your workplace?

    Is your team able to work remotely if your office needs to close?

    Do you need to change or re-enforce your working policies? 

  • Key focus areas for businesses

    Customers and suppliers

    Could there be unexpected consequences for your business from the coronavirus outbreak? How can you plan for this and will you have the working capital to restart your business when activity picks back up?

    Do you need to inform your clients and customers of any changes to your services? This could include different opening times and delays in deliveries or deadlines.

    Do you have plans in place to ensure regular and clear communication to clients about your policies and updates on services?

    Which customers will need extended terms from you and which suppliers might require different arrangements? Liaise with your suppliers to determine how they can support you.

    With international travel and export impacted by the coronavirus, have you assessed the strength of your supply chain and do you have alternatives in place if you need to source another provider?

  • Key focus areas for businesses

    Tax

    With coronavirus having an impact on your profits and cashflow, do you need extra time to pay any outstanding tax debt? Will you need to agree a bespoke Time To Pay arrangement with the government? Could employee absence cause you to miss a deadline to file?

    Will you be able to request a refund on additional statutory sick pay claimed by staff who are unable to work because of the virus? Can you get a loan or grant, or claim a business rates relief discount, to see you through the outbreak?

  • Key focus areas for businesses

    Audit

    What will the impact be on your business, including credit availability and cash flow, supply chain, access and impact on your customers, workforce availability and access to any government support? Given the disruption, are you able to acquire the evidence and speak to who you need to remotely?

    Will you be able to delay audit dates, or make arrangements for the effective audit using a virtual (off-site) approach? How will you reschedule, given the uncertainty of when the pandemic will end? Can deadlines be extended, particularly your filing arrangements?

    Is your audit team still able to obtain sufficient audit evidence with restrictions to your premises and staff? How will the audit of any international operations/subsidiaries (components) be delivered to meet the requirements of auditing standards and regulation?

    Are you able to bring stock takes forward to before travel bans are in place? Will management then be able to produce a roll-forward reconciliation and will we be able to audit that? How will this work?

  • Key focus areas for businesses

    Stakeholders

    Do you need to pro-actively check in with your stakeholders during these difficult periods? Communicate with your financiers, shareholders, customers and employees early and often.

  • Key focus areas for businesses

    Insurance

    Do you need to check your insurance coverage will protect you against losses from natural disasters?

    Could a successful claim be made against you under a business interruption or event cancellation policy?

    Do you need assistance in quantifying the financial impact of a disruption?

    Read more: Business interruption and the impact of coronavirus >>

  • Key focus areas for businesses

    Cash flow and financing

    Are changes and delays to your service going to have an impact on your cash flow. Do you need to have discussions with clients or suppliers about renegotiating terms?

    Do you need to speak to your funding suppliers about additional funding and operational covenants for the next few months?

    What will things look like in six months’ time?

    Read more: Seven practical steps for companies impacted by coronavirus >>

  • Key focus areas for businesses

    Business continuity and risk

    When uncertainty is the new normal, standing still isn’t an option. Drastic changes to working arrangements around the world and ever-changing expectations of customers, employees and governments mean it’s time to examine the variety of risks facing your organization. From supply chain to working capital, it’s critical that organizations understand and strategize against their unique level of vulnerability in order to keep moving forward.

    Grant Thornton’s Pandemic Risk Assessment puts you on the road to recovery by helping you understand your immediate risks in four key risk quadrants:

    Our time sensitive, data driven assessment quantitatively determines risk factors and offers focused resiliency plans to protect your business, customers, and shareholders. You’ll receive:

    • A resiliency dashboard showing where you are now against 4 impact zones and 8 key risk factors
    • Benchmarking of your pandemic risk status compared to others in your industry
    • Immediate recommendations to quickly address your most significant risks and needs

    Don’t wait for answers. Take Grant Thornton’s online Pandemic Risk Assessment to examine the impact of this pandemic on your business, learn strategies to navigate COVID-19 and identify the areas within your business where resiliency is a competitive advantage.