Uncertain times

Global IFRS Institute    

Your company, your employees and your customers are likely to be facing challenges in these uncertain times. COVID-19, natural disasters, geopolitical events and inflation are just some of the major issues driving global economic uncertainty today.

This evolving uncertainty creates a variety of issues and risks, including changes in consumer demand, disrupted supply chains, staff shortages, increased market volatility and changes to the way we work.

These articles, blogs and podcasts explore the potential accounting and disclosure implications for your company.

• Impact of external events on the going concern assessment and disclosures

• How should companies assess external events after the reporting date?
  

• Ukraine–Russia conflict – Have non-financial assets become impaired?
• Will taxable profits be available to recover deferred tax assets?
  
• Have lease assets become impaired?
• Are revenue-cycle assets recoverable?
• How might capitalisation of borrowing costs be affected?
• Recovery from COVID-19 – Time to reverse impairment losses on non-financial assets?
• Moving to hybrid working – Is your leased office space impaired?

• Does measurement of expected credit losses appropriately reflect the impact of increased economic uncertainty?
• Has the impact of increased economic uncertainty on credit risk been appropriately considered?
• How is hedge accounting impacted?
  
• Does a contract still meet the own use exemption?
• Have borrowers considered changes to the terms of their liabilities?
• How are expected credit losses on trade receivables impacted?
  
• How is a hedge of interest rate risk impacted by a payment holiday?  

• Has an external event resulted in an unavoidable liability or a loss-making contract?
• When is the right time to recognise a restructuring provision?
• How do external events impact current and non-current classification of debt?

• Are customer contracts still enforceable?
• Are revenue estimates up to date – e.g. variable consideration, measure of progress?
• How should companies account for insurance proceeds?

• Where and how should COVID-19 impacts be presented in the income statement and related notes?

• What is the impact of external events on interim financial statements?

• Have there been changes to employee benefits and employer obligations?

• COVID-19 – What are the specific accounting implications for insurers?

• Have expectations around lease renewal, termination or purchase options changed?
  

• Are government grants recognised in the right period and appropriately measured?
• How should companies account for different forms of government assistance?

• COVID-19 – Areas of focus for 2021 year ends 
• COVID-19 – Estimating in uncertain times
• COVID-19 – Financial reporting implications
• COVID-19 – Accounting for government assistance
  
• COVID-19 – Accounting for provisions

• How is the pandemic affecting banks' loan books?
  
• Canadian banks and COVID-19 – Impacts on 2020 half-year results 
• European banks and COVID-19 – Impacts on 2020 half-year results
• European banks and COVID-19 – Impacts on 2020 Q3 results
• European banks and COVID-19 – What do 2020 annual accounts say?