The document discusses the potential impacts of the COVID-19 pandemic on company financial reporting. Key impacts include assessing going concern assumptions, revising estimates and forecasts used for impairment testing and other accounting, adjusting revenue recognition and receivables estimates, and evaluating fair value measurements and internal controls. Companies must also consider expanded risk disclosures and the challenges of completing audits due to travel restrictions and economic uncertainty caused by the pandemic.
All entities will have to reevaluate their revenue recognition processes when the Financial Accounting Standard Board (FASB)’s Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) is adopted, beginning with those early adopting in 2017.
We remain in a relatively quiet time for changes in accounting and reporting standards affecting not-for-profit organizations, notwithstanding larger proposals affecting the intermediate and longer term.
On October 30, 2015, the Securities and Exchange Commission (SEC) issued the final rules related to crowdfunding for select companies. The rules fulfill Title III of the Jumpstart Our Business Startups (JOBS) Act, which was signed into law in 2012.
Solution Manual Advanced Accounting Chapter 15 9th Edition by BakerSaskia Ahmad
Solution Manual, Advanced Accounting, Thomas E. King, Cynthia Jeffrey, Richard E. Baker, Valdean C. Lembke, Theodore Christensen, David Cottrell, Richard Baker, Advanced Financial Accounting, Advanced Financial Accounting by Baker Chapter 18, Advanced Financial Accounting by Baker Chapter 18 9th Edition, 9th Edition,
All entities will have to reevaluate their revenue recognition processes when the Financial Accounting Standard Board (FASB)’s Accounting Standard Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) is adopted, beginning with those early adopting in 2017.
We remain in a relatively quiet time for changes in accounting and reporting standards affecting not-for-profit organizations, notwithstanding larger proposals affecting the intermediate and longer term.
On October 30, 2015, the Securities and Exchange Commission (SEC) issued the final rules related to crowdfunding for select companies. The rules fulfill Title III of the Jumpstart Our Business Startups (JOBS) Act, which was signed into law in 2012.
Solution Manual Advanced Accounting Chapter 15 9th Edition by BakerSaskia Ahmad
Solution Manual, Advanced Accounting, Thomas E. King, Cynthia Jeffrey, Richard E. Baker, Valdean C. Lembke, Theodore Christensen, David Cottrell, Richard Baker, Advanced Financial Accounting, Advanced Financial Accounting by Baker Chapter 18, Advanced Financial Accounting by Baker Chapter 18 9th Edition, 9th Edition,
Financial accounting icab chapter 9 provisions, contingencies and events after the balance sheet date
Financial accounting icab chapter 9 provisions, contingencies and events after the balance sheet date
Financial accounting, icab ,chapter 9 ,provisions, contingencies ,and events after the balance sheet date
Taxmann's E-book |COVID-19 & Impact on Financial ReportingTaxmann
Contents Covered in this E-Book
• Non-performance of contractual obligations
• Travel and tourism industry is being hit hard
• Mitigating Factors
• Auditor’s responsibility
• Inventory physical verification
• Going concern assumption
• Other considerations
• Conclusion
Financial accounting icab chapter 9 provisions, contingencies and events after the balance sheet date
Financial accounting icab chapter 9 provisions, contingencies and events after the balance sheet date
Financial accounting, icab ,chapter 9 ,provisions, contingencies ,and events after the balance sheet date
Taxmann's E-book |COVID-19 & Impact on Financial ReportingTaxmann
Contents Covered in this E-Book
• Non-performance of contractual obligations
• Travel and tourism industry is being hit hard
• Mitigating Factors
• Auditor’s responsibility
• Inventory physical verification
• Going concern assumption
• Other considerations
• Conclusion
Presentation on Covid impact on financial reporting Taxmann
Coverage of the Webinar
1. COVID-19: PANDEMIC AND THE RIPPLE EFFECT
A. Unprecedented Human, Economic and Financial Crisis facing the world with widespread disruption
B. Due to the significant downturn in the economic activities and the long term impact of the same, the RBI, as well as leading credit rating agencies (Moody, S&P, Fitch, and CRISIL), have predicted a shrinkage of the GDP during FY 2020-21 of 2%-5% and all-time high unemployment.
2. FINANCIAL CHALLENGES & MITIGATING PLANS
A. An entity engaged in tourism and hospitality is heavily dependent upon the tourists from India traveling overseas and foreign nationals visiting India. In the light of COVID-19 outbreak across the globe, the entity has analyzed the likely impact of customers' behavior coupled with bleak employment scenario on its revenue over the next year.
B. This review has indicated possible substantial operating losses during the next financial year i.e. 2020-21.
C. The entity is exploring the possibility of recognizing a certain amount of operating losses as the provision in the financial
statements of the current year itself i.e. 2019-20.
3.AUDITING CHALLENGES
A. COVID -19 caused unprecedented situations
in the businesses and the environment. Changes at such a large scale impacted each industry.
B. Albeit auditors faced many difficulties in auditing areas of financial statements, challenges faced while auditing inventory
has been taken as an example and discussed in the following slides.
4. IMPACT ON FINANCIAL REPORTING
A. Updated financial forecasts for the foreseeable future, but not less than a 12-month period;
B. Updated sensitivity analysis;
C. Forecasted compliance, or lack thereof, with banking and other covenants for the foreseeable future; and
D. Any other information available up to the date the financial statements are authorized for issuance.
5. OTHER KEY CONSIDERATIONS
A. Employee Benefits
B. Internal Financial Control over Financial Reporting
C. Data Confidentiality and Cyber Security
As the COVID 19 pandemic is rolling along with us, it has interrupted the flow of commerce to an extent and has had a significant impact on the economy. As a result of the business interruption, auditors have been obliged to develop new audit methodologies and techniques in order to overcome the problem.
Due to the worldwide outbreak of COVID-19, businesses across industry sectors are likely to go through an extended, though finite, period of reduced revenues and continuing fixed costs. Most businesses are likely to suffer large costs/losses. See More : https://www2.deloitte.com/in/en.html
Kingdom of Saudi ArabiaMinistry of EducationUniversity of Ha.docxDIPESH30
Kingdom of Saudi Arabia
Ministry of Education
University of Hail
College of Nursing
المملكة العربية السعودية
وزارة التعليم
جامـعـة حـائل
كلية التمريض
Master of Science in Nursing (MSN) - Emergency Nursing
Exam Begins: Saturday 09/05/2020 -10:00 pm
Exam Ends: Monday 11/05/2020 - 10:00 pm
Exam Duration: 48 hours
Section: Male &Female side
Final Exam of Theoretical Foundation for Nursing (NURS 501)
Semester :2nd semester 2019-2020
Answer Sheet
Answer Sheet
Student Name: ------------------- ID: ---------------------------
Page 1 of 1
Introduction
Financial statement analysis is the way toward breaking down an organization's fiscal reports for dynamic purposes. Outside partners use it to comprehend the general soundness of an association just as to assess budgetary execution and business esteem. Interior constituents use it as an observing apparatus for dealing with the accounts (KENTON, 2019).
Investigating Financial Statements
The fiscal reports of an organization record significant monetary information on each part of a business' exercises. Accordingly they can be assessed based on past, current and anticipated execution.
Task 1
1) The board of the company: The administration of the organization is the above all else client of the fiscal reports. In spite of the fact that, they are the ones who set up the fiscal reports the board and the administration all in all need to allude to them while thinking about the advancement and development of the organization. The administration of the organization takes a gander at the budget report from the point of view of liquidity, benefit, incomes, resources and liabilities, money adjusts, support necessities, obligation to be paid, venture financing and different days to day operational action. Basically, the executives of the organization needs budget summaries to settle on choices about the business.
2) Speculators: are the proprietors of the organization, they might want to comprehend keep update with the money related execution of the organization. They might want to settle on the choice dependent on the fiscal report whether they have to keep contributed or move out of the organization dependent on its presentation.
3) Clients: Clients need to see the budget summaries of the organization from which they are acquiring merchandise or administrations. Enormous customers might want to have a long haul organization or agreement with the organization along these lines they might want to work with an organization that is monetarily steady. Further, a monetarily solid organization can give its clients credit deals and can convey items and administrations at a rebate than the market.
4) Contenders: might want to know the monetary status of the contending organization. They might want to keep up a serious edge on their rivals and henceforth, might want to know the monetary wellbeing of the other organizatio ...
4 Ways the Manufacturing & Distribution Sector Can Prepare for the Post COVID...CBIZ, Inc.
Manufacturers and distributors were among the first sectors to feel the impact of the COVID-19 pandemic and may continue to feel its effects during the recovery phase. A number of strategies are discussed that may help manufacturers and distributors expedite their financial recovery as they adjust to the new normal.
Strategic implications of IFRS9 oliver wymanGeoff Holmes
IFRS9 will fundamentally change the level and dynamics of credit provisions, and will result in significantly diminished returns for some segments. To date, most banks have focussed on ensuring compliance, but with the 2018 implementation deadline approaching attention is turning to understanding and mitigating the impacts.
IFRS9 materially impacts lending economics, particularly for consumer credit and SME products where some segments will be significantly less attractive than today. Given all lenders are affected, this represents a challenge and an opportunity. Those who develop their responses early and optimise their actions stand a good chance of getting ahead of the competition.
The paper attached examines how IFRS9 impacts profitability, where the effects are most material, and how lenders can respond.
Signature Bank Results Presentation DeckMarch 2023.pdfBryann Alexandros
Signature Bank was a bank that did business in New York City and other states. It had $110.4 billion in assets and $82.6 billion in deposits by the end of 2022. It used to have offices only in New York City. In the late 2010s, it started to grow and offer more services, but it was most known for its 2018 decision to work with the cryptocurrency industry. By 2021, cryptocurrency businesses had 30 percent of its deposits. Banking officials in New York shut down the bank on March 12, 2023, two days after Silicon Valley Bank (SVB) went broke. After SVB went broke and because Silvergate Bank, another cryptocurrency-friendly bank, went broke earlier in the week, scared customers took out more than $10 billion in deposits. It was the third-biggest bank failure in U.S. history. On March 19, a week after the bank shut down, the FDIC sold the new bank, most of its deposits, and its 40 offices to New York Community Bancorp to be part of its Flagstar Bank part. Some $4 billion in digital money banking deposits and $60 billion in loans were not part of the deal.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
1. Introduction:-
The rapid outbreak of the coronavirus (COVID-19) presents an alarming health crisis that the world is grappling
with. The impacts of the COVID-19 pandemic are unfolding in real time.The COVID-19 outbreak has already had
a significant effect on the economies of affected countries and international financial markets. As the
companies in India approach their year end, there is an urgent need to evaluate the impacts of the outbreak on
their accounting and financial reporting.
Key Impacts on financial reporting:-
The financial reporting impacts of the COVID -19 outbreak will depend on facts and circumstances, including
the degree to which a company's operations are exposed to the impacts of the outbreak. Some of the key
accounting and financial reporting considerations for the companies are explained below:-
Going concern:- The outbreak of COVID-19 has caused a significant deterioration in economic conditions for
some companies and an increase in economic uncertainty for others.
Management would need to assess whether the current events and conditions cast significant doubt on the
company's ability to continue as a going concern, or in severe cases, whether the going concern assumption is
still appropriate as a basis for the preparation of the company's financial statements. In many cases, budgets
and forecasts that may have been used to support management's initial going concern assessment may now be
of limited relevance given the rapidly changing economic and business circumstances and may require
significant revision to be able to support management's assessment in the current environment.
Covid-19:- Potential Impact on Financial Reporting
2. It would be critical to understand what impacts current events and conditions have on a company's operations
and forecast cash flows, with the key immediate issue being whether the company still has sufficient liquidity
to continue to meet its obligations as they fall due to the extent the events and conditions are identified that
may cast significant doubt on a company's ability to continue as a going concern, disclosure would be
required if these events constitute material uncertainties or management's conclusion involved significant
judgement (e. a 'close call scenario). Additionally, Ind AS 107. Financial instruments:
Disclosures requires disclosure of quantitative data about liquidity risk arising from financial instruments. A
company also needs to explain how it is managing this risk including any changes from the previous period
and any concentrations of liquidity risk.
Impact on accounting estimates:-
Various accounting estimates, which depend on future forecasts, could be impacted by the outbreak.
Examples of specific areas that may be impacted include:
Impairment of non-current assets and goodwill:-Many companies may be facing the problem of low
demand for their products or services or may be affected by the restrictions imposed by the government.
Certain companies may be dependent on supply chains or may have production facilities in the states in India
and abroad affected by lockdown. This situation could be an impairment trigger, and require an impairment
test. However, it could be a challenge for many companies to estimate future cash flows due to the increase in
economic uncertainty.
Onerous contract provisions:- Customer contracts may become onerous if, for example, suppliers are unable
unable to fulfil their obligations under the contract as a result of closure or reduced production by
manufacturing plants, which would necessitate recognition of a provision. Delay in fulfilment of contractual
obligations may also result in penalties to be provided for.
3. Valuation of inventory: There could be a significant impact on the inventory valuation on account of forced plant
shutdowns, decline in net realisable value due to reduction in demand and non-fulfillment of sales and purchase
contracts.
Expected Credit Losses (ECLs): Certain sectors and regions may be particularly severely affected by the economic
effects of COVID-19. Hence, companies would need to consider the impact of COVID-19 appropriately while
recognising ECLS. However, the companies may find it challenging to incorporate into their measurement of ECLs
forward looking information relating to the economic impact of COVID-19 that is available without undue cost or
effort at the reporting date.
Deferred tax assets: The recoverability of deferred tax assets may be impacted by changes to future forecasts.
Insurance Claims : The companies may evaluate the terms of their insurance policies and estimate possible
compensation surrounding loss of profits and business disruption, etc, including timing of recognition of such
Fair Value Assessment:- The fair value of an asset (or liability) is determined as per the market conditions at the
measurement date. Due to uncertainty of the economic impact of COVID-19, there would be a significant change in
the assumptions used to measure fair value of the assets and liabilities of a company at the end of the reporting
period including considerable change in the valuation techniques being adopted by the companies on account of
change in the market conditions and related observable inputs, redundant previous information, etc. Appropriate
disclosures to address the change would become necessary.
As per Ind AS 1, Presentation of Financial Statements and Ind AS 113, Fair Value Measurement a company would
to provide sensitivity disclosures along with disclosure of the key assumptions and judgements made by
This is likely to enable users to understand how fair value has been determined and categorisation of fair value
hierarchy.
4. Revenue recognition: Companies would need to assess the impact on revenue recognition aspects such as
revision of estimates of variable consideration and also timing of revenue recognition whether consideration is
probable in case of sales to customers in COVID-19 affected states in India and regions around the world.
they should consider related impact on recoverability of trade receivables including estimate of expected
losses.
Lease accounting: A company which is a lessee would need to assess its right-of-use assets for impairment.
Similarly, lessors would need to ascertain whether some of their underlying assets held for lease are to be
considered for impairment due to decrease in demand for such assets or steep decline in rentals. Other
areas could be determination of lessee's incremental borrowing rate on account of change in its borrowing
consequent to decline in its credit rating, reassessment of lease contracts including lease term and revenue
recognition by lessor.
Internal controls over financial reporting: Companies should also evaluate the effect on internal control over
financial reporting, if any, For instance, new controls or modification in controls would be required where
companies have enhanced/modified IT access to enable remote workforces.
Employee benefits: Market volatility and changes to remuneration policies may impact how companies
estimate and measure employee benefits and recognise share-based payment expenses. Modifications to
based payment arrangements will need to be assessed as to whether they are either beneficial or non-
to the employees and accounted for accordingly.
Government grants: Management would need to monitor government actions and legislation to identify all
assistance given amid COVID-19 definition of a government grant. Companies that have not previously
government grant may need to develop new accounting policies and procedures and significant judgement
be required to address newly implemented government programmes
Companies could consider expanding disclosures on the accounting policies for government grants and the
impact of grants and other assistance on the financial statements.
5. Disclosures in the annual reports:- Other information that accompanies the financial statements may include
additional discussion of risks associated with the outbreak if the expected impacts could be significant.
Management would need to consider whether the explanation of events relevant to understanding the
on the entity complies with regulatory requirements and responds to regulators' and users' expectations.
Disclosures should include identification of key assumptions about the impact of COVID-19 on material
estimates and sources of estimation uncertainty that could result in material adjustments to the carrying
of assets and liabilities, including sensitivity analysis.
Potential impact on audit, an auditor's report and completion of the last quarter's results and
annual financial reporting process:-
Companies may face challenges in helping auditors to conduct their audits as it may be difficult to provide
access to their establishments (eg. not being able to observe management's inventory counts or to physically
verify fixed assets after year-end). Also in certain situations, companies may have challenges in obtaining
to management and others, including legal counsel, management's experts due to travel restrictions. They
not be able to provide the anticipated audit evidence e.g. there could a significant decline in response rates
bank and/or debtor confirmations. For large companies with various overseas components, there could be a
significant challenge to work with component auditors and managements of the overseas components.
These challenges could lead to certain implications in the auditor's report which may include:
Reporting of a new Key Audit Matter (KAM) in response to additional audit work necessary as a result of the
outbreak.
An emphasis of matter paragraph relating to a significant uncertainty arising from the outbreak
A qualification or adverse opinion in respect of inadequate disclosures in the financial statements.