3 minute read 22 Jul 2020
Key accounting considerations for businesses amid COVID-19

Applying Ind AS: Key accounting considerations for businesses amid COVID-19

By Sandip Khetan

EY India Financial Accounting Advisory Services Leader

Keynote speaker. Seasoned accountant. Experienced GAAP consultant.

3 minute read 22 Jul 2020

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.

With the organizations now having some experience of the impacts of the pandemic on their businesses, the estimates made by the management while preparing financial statements for the year ended 31 March 2020 will now have to be relooked for the preparation of financial statements for the coming periods.
Sandip K. Khetan
EY India Financial Accounting Advisory Services Leader

In this publication, our accounting advisory services highlight existing accounting considerations and impact of proposed amendment to Ind AS 116 which is expected to be issued shortly. It also provides some insights into their application that should be kept in mind when preparing Ind AS Financial Statements considering the impact of COVID-19 and addresses some of the most common questions that many entities would be evaluating in the preparation of their financial statements. The earlier issue of this publication was released in April 2020. In this updated version, we have made certain updates to address some new issues which have evolved since the previous version.

Summary

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. In this updated version, we have made certain updates to address some new issues which have evolved since the previous version.

About this article

By Sandip Khetan

EY India Financial Accounting Advisory Services Leader

Keynote speaker. Seasoned accountant. Experienced GAAP consultant.