COVID-19: What is the impact of COVID-19 on financial statements?

Saket Modi | Last updated: 23 March 2020

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The COVID-19 pandemic has significantly impacted businesses globally, leading to complex implications for financial statements prepared under IFRS. Events occurring in 2020, like the widespread impact of the virus, are considered non-adjusting events for financial periods ending in 2019, but material impacts must be disclosed. For companies with a March year-end, adjustments for the estimated financial impact are required. Key areas requiring close attention include going concern assessments, customer receivables, inventory, asset impairment, and abnormal costs.

The World Upside Down: What is the impact of COVID-19 on Financial Statements? The world has turned upside down in the last few weeks with the impact of COVID-19 spreading to businesses and people globally. Who would have imagined this at outset of the decade? Bill Gates said in his 2015-TED t

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About the Author

Saket Modi

Director

Saket Modi is the Founder and Director of Square Mile Global Consulting (www.smglobal.co.uk), a London-based financial training and consulting company. Saket specialises in matters relating to international financial reporting and analysis (IFRS/Ind AS/IPSAS), including financial instruments and insurance contracts. ... Read more

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