This publication provides a reminder on key accounting considerations that should be examined when addressing the financial effects of the coronavirus outbreak in the preparation of Indian Accounting Standard (Ind AS) financial statements.
The COVID-19 outbreak has had a significant impact on the business operations of many entities across the globe. While businesses across various parts of the country are resuming their operations gradually as per the directives of the government, they are still facing challenges due to this sudden change in the macro economic environment. Further, governments across the globe are also coming up with stimulus packages to give a boost to the economy of respective countries.
Organizations now have some experience of the impacts of the pandemic on their businesses and they are now in a better position to estimate the impacts that may come in future. Accordingly, the estimates made by the management while preparing financial statements for the year ended 31 March 2020 will have to be relooked for the preparation of financial statements for the coming periods. Entities can also leverage from the disclosures made by other entities globally.