Applying IFRS - Accounting considerations of the coronavirus outbreak
Accounting considerations when addressing the financial effects of the coronavirus outbreak in preparing IFRS financial statements for the year ended 31 December 2019.
With the recent and rapid development of the coronavirus outbreak, many countries have required entities to limit or suspend business operations and have implemented travel restrictions and quarantine measures. These measures and policies have significantly disrupted (or are expected to disrupt) the activities of many entities. Disruptions are more immediate and pronounced in certain industries such as tourism, hospitality, transportation, retail, and entertainment, while there are also anticipated knock-on effects on other sectors such as manufacturing and the financial sector.
As the outbreak continues to progress and evolve, it is challenging at this juncture, to predict the full extent and duration of its business and economic impact. Consequently, these circumstances may present entities with challenges when preparing their IFRS financial statements.