How will coronavirus impact your financial statements?
The 2019 novel coronavirus (COVID-19) outbreak poses a serious public health threat. It has interrupted the movement of people and goods throughout the world, and many levels of governments are implementing restrictions on individuals and businesses. These actions are likely to have a devastating impact on the global economies and businesses, which will have a flow-on affect to financial statements in future.
Because of the declaration by the WHO of a global health emergency on 31 January 2020, COVID-19 financial reporting implications are no longer a ‘non-adjusting subsequent event’, and the impacts on transactions and balances recognised in financial statements are likely to be significant for many entities. This would include impairment issues relating to financial assets, non-financial assets, inventories, E&E assets, investments in associates and joint ventures, deferred tax asset balances, as well as triggering onerous contracts, and other lease accounting issues as a result of lease concessions. Going concern assessments for many entities will also be severely impacted by uncertainty over future forecasts, and there are a range of other potential financial reporting implications as well.
Model financial statements
International Financial Reporting Bulletins
16 December 2021
23 September 2021
22 July 2021
22 June 2021