Government and Not For Profit Accounting Update Part One
28 May 2020
30 June 2020 is fast approaching, many aspects of financial reporting will be significantly affected by the coronavirus outbreak and the adoption of three new accounting standards.
The decrease in asset values, inability to perform services during lockdown, lack of access to fund raising, reduced number of volunteers, increased demand for services and idle assets.
The key areas of impact from COVID-19 that you need to consider are:
- Accounting for government support
- Impairment of assets
- Recognition of provisions
- Onerous contracts
- Redundancy provisions
- Refund of grants
- Refunds of customer monies
- Modifications to leases
- Cash flow and funding issues that could impact going concern
- Impact of lockdown on going concern
We will consider the practical issues NFP and Government entities have in implementing AASB 16 Leases.
Watch Part 2 here:
PART 2: AASB 15 AND 1058 ACCOUNTING STANDARD UPDATE