Accounting considerations related to COVID-19
Special Edition Accounting Alert
Special Edition Accounting Alert update - 27 March
As the pandemic increases in both magnitude and duration, entities are experiencing conditions often associated with a general economic downturn. This includes, but is not limited to, financial market volatility and erosion, deteriorating credit, liquidity concerns, further increases in government intervention, increasing unemployment, broad declines in consumer discretionary spending, increasing inventory levels, reductions in production because of decreased demand, layoffs and furloughs, and other restructuring activities. The continuation of these circumstances could result in an even broader economic downturn which could have a prolonged negative impact on an entity’s financial results.
For-profit entities may find our global IFRS in Focus (dated 27 March 2020) useful when preparing financial statements. It discusses certain key IFRS accounting considerations related to conditions that may result from the COVID‑19 pandemic, with more in-depth analysis than our previous 19 March 2020 alert. Some sections will also be applicable for public benefit entities where the Public Benefit Entity Standards are aligned with IFRS.
Special Edition Accounting Alert - 19 March
Global and local responses to the coronavirus disease 2019 (COVID-19) outbreak continue to rapidly evolve. COVID-19 has already had a significant impact on business operations and financial markets, and it may have accounting implications for many entities which business leaders and finance teams will also need to address as reporting deadlines approach.
The purpose of this alert is to highlight some of the key issues to be considered by entities in preparing their financial statements applying NZ IFRS or PBE Standards for periods ending on or after 31 December 2019.