Impact of COVID-19 on IFRS Financial Statements
The coronavirus pandemic has affected most businesses globally. There are currently uncertainties around when we will get back to normality. This has implications on the preparation and analysis of the IFRS financial statements.
The extraordinary situation that we are currently in has an impact on the topline (revenue) and the bottom line (profitability). Most entities are required to carry out a going concern and liquidity assessment, and adjust the measurement of the assets and liabilities. Disclosures are required in the interim and annual financial statements to help users assess the impact of COVID-19 on the financial position, financial performance and the cash flows. There are significant judgements and estimates used in preparation of the financial statements.
This half-day virtual course provides an in-depth analysis of the key principles in the standards that affect the financial statements due to the coronavirus pandemic. We will look at the guidance on preparation of the financial statements and real-life examples on the impact of COVID-19.
To enable participants to obtain an in-depth understanding of the key areas of impact on IFRS financial statements due to the coronavirus pandemic:
- Review the key considerations in the going concern assessment
- Identify the significant uncertainties and disclosures required in the financial statements
- Identify the specific standards that require consideration in preparation and analysis of the IFRS financial statements due to the impact of COVID-19
- Apply the principles in various standards identified above to assess the impact of COVID-19 on the financial statements
- Analyse the impact on the measurement of the assets and liabilities, including impairment and debt restructuring
- Overview of the disclosures required in interim and full year financial statements
Who should attend?
The course is useful for preparers and users of financial statements:
- Staff in finance and treasury departments
- Internal and external auditors
- Analysts who review the financial statements
- Senior management and executives
A basic understanding of financial statements under any GAAP is a pre-requisite.
09:00 – 10:30 Session 1
- Executive summary of the impact of COVID-19 on the financial statements
Presentation of Financial Statements
- Going concern assessment
- Significant judgements and estimates, and related disclosures (IAS 1)
Financial Instruments (IFRS 9)
- Classification of financial assets
- Restructuring of loans
- Impairment based on expected credit loss model, including IASB COVID-19 guidance
Case study: Analysis of disclosures in real-life financial statements
10:30 – 10:45 Break
10:45 – 12:15 Session 2
Measurement of Assets and Liabilities
- Inventories (IAS 2)
- Impairment of assets, including goodwill (IAS 36)
- Leases, including update on rent concessions (IFRS 16)
- Employee benefits (IAS 19)
- Provisions (IAS 37)
- Accounting for government support (IAS 20)
- Deferred tax assets (IAS 12)
- Interim financial reporting (IAS 34)
Case study: Analysis of the impact of rent concessions due to COVID-19
Saket Modi, CFA is the Founder and Director of Square Mile Global Consulting, a London-headquartered financial training and consulting company. He has designed and facilitated workshops for finance professionals from over 50 countries in Europe, Middle East, Africa and Asia. Saket specialises in financial reporting and analysis (IFRS/IPSAS), financial instruments, and insurance contracts. He has spent considerable time working, advising and training in matters relating to IFRS including technical updates, and delivered workshops for corporate, banks and similar financial institutions, public sector organizations, and professional services firms. Saket has written material on IFRS Accounting for Financial Instruments for Institute of Chartered Accountants in England and Wales and was invited by the International Auditing and Assurance Standards Board® (IAASB®) to present on IFRS 9 at their board meeting in New York. He has recently presented on the “Impact of COVID-19 on IFRS Financial Statements” to participants globally at a number of webinars and training sessions. Saket has previously worked with Lloyds Banking Group, TSB Bank, Ernst & Young and PricewaterhouseCoopers. In addition to being a Chartered Accountant (India), Saket holds IFRS certificate from the Institute of Chartered Accountants in England and Wales (ICAEW) and IPSAS Diploma from the Chartered Institute of Public Finance and Accountancy (CIPFA). He has an MSc in Multinational Accounting and Financial Management from UK and is a CFA® charterholder. Connect with Saket: https://www.linkedin.com/in/saketmodi/