IFRS in Focus: COVID-19 Accounting considerations
27 March 2020 update
Following the issuance of the first IFRS in Focus dedicated to the COVID-19 pandemic, Deloitte has issued a second publication in connection with this.
This IFRS in Focus 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 this publication will of course vary by industry and by entity.
- Going concern - It should be noted that the assessment as to whether the going concern basis is appropriate takes into account events after the end of the reporting period. For example, 31 December 2019 reporters that are severely affected by COVID-19 will need to consider the appropriateness of preparing financial statements on a going concern basis (even though the significant impact on operations occurred after year-end).
- Effect on the amounts recognised - We also remind you that with respect to reporting periods ending on or before 31 December 2019, it is generally appropriate to consider that the effects of the COVID-19 outbreak on an entity are the result of events that arose after the reporting date that may require disclosure in the financial statements but would not affect the amounts recognised.
The effect of COVID-19 in the context of subsequent reporting periods will be discussed during the Large Firms Lunch Meeting being held on Tuesday 7 April.
Similarly, the Large Firms Financial Instruments meeting that Deloitte is chairing on 1 April will be dedicated to COVID-19 related financial instruments issues.