The novel coronavirus (COVID-19) pandemic is spreading around the globe rapidly. The virus has taken its toll on not just human life, but businesses and financial markets too, the extent of which is currently indeterminate. Entities need to carefully consider the accounting implications of this situation.
Our series of COVID-19 articles focusses on areas entities need to consider from a financial reporting perspective. IFRS requires that all the material effects of COVID-19 are appropriately recognised, measured and disclosed at the entity’s reporting date; be it interim or at year-end. Management therefore need to consider not only what has happened and is happening at the reporting date and the time the financial statements are approved, but also what is likely to happen next. Our articles aim to help you with this process.