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IFRS in focus: Considerations relating to COVID-19

How can COVID-19 affect financial statements?

Economic effects of COVID-19 may be material for a number of business entities and their suppliers, clients and lenders. The prolonged epidemic threat increases the risk of economic slowdown, which may affect other reporting and accounting aspects.

COVID-19 publications series

 

Reporting processes need to be supplemented with additional control activities. As the pandemic increases in both magnitude and duration, entities are experiencing conditions often associated with a general economic downturn.


Below are the articles that highlight Accounting considerations amidst COVID-19.

IFRS in Focus — Accounting considerations related to the Coronavirus 2019 Disease
 

This IFRS in Focus highlights some of the key issues to be considered by entities in preparing their financial statements applying IFRS Standards.

Click here to download the article.

Financial Reporting Alert 20-2 — Financial reporting considerations related to COVID-19 and an economic downturn
 

This Financial Reporting Alert discusses key accounting and financial reporting considerations related to conditions that may result from the COVID-19 pandemic as well as various industry-specific considerations.

Click here to download the article.

IFRS in Focus — Expected credit loss accounting considerations related to Coronavirus Disease 2019
 

This publication discusses certain key IFRS accounting considerations related to the accounting for expected credit losses (ECL) that may result from the COVID-19 pandemic. The focus of this publication is for lenders and banks though much of it will be applicable to measurement of ECL in industries other than financial services.

Click here to download the article.

IFRS in Focus - Accounting considerations related to the Coronavirus 2019 Disease
 

As the pandemic increases in both magnitude and duration, entities are experiencing conditions often associated with a general economic downturn. This includes, but is not limited to, financial market volatility and erosion, deteriorating credit, liquidity concerns, further increases in government intervention, increasing unemployment, broad declines in consumer discretionary spending, increasing inventory levels, reductions in production because of decreased demand, layoffs and furloughs, and other restructuring activities.

Click here to download the article.

Accounting considerations related to the Coronavirus 2019 Disease
 

Updated on 20 April 2020. Key changes include statement of profit or loss, going concern, impairment of nonfinancial assets, and lease contracts.

Download the article here.


COVID-19 video series

 

This series of webcasts discusses certain key IFRS accounting considerations related to conditions that may result from the COVID-19 pandemic.

The significance of the individual issues discussed in the webcasts will of course vary by industry and by entity, but we believe that the topics of the webcasts will be the most pervasive and difficult to address.

Accounting considerations related to COVID-19 — Events after the reporting period
 

20 Apr 2020
This video discusses the effect of COVID-19 on accounting after the reporting period. Since the 31st of December 2019, the events around COVID-19 have developed rapidly.

In a global marketplace that is currently extremely volatile and in which major developments are occurring daily, it may be challenging for an entity to determine if an event after the end of the reporting period affects the recognition and measurement of assets and liabilities in the financial statements. When new information is obtained after the end of the reporting period, entities need to carefully assess if that information reveals a condition that existed before the end of the reporting period.

Accounting considerations related to COVID-19 — Judgements and estimates
 

10 Apr 2020
This video discusses the effect of COVID-19 on accounting judgements and estimates. There is a high degree of uncertainty about the ultimate trajectory and the path and time needed for a return to a “steady state.” Entities will need to do their best to make reasonable estimates, prepare comprehensive documentation supporting the basis for such estimates and provide robust disclosure of the significant judgements exercised, the key assumptions used and, potentially, their sensitivity to change.

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