Question

Assignment Requirements:
The coronavirus (COVID-19) pandemic has significantly affected businesses around the globe. This include interruption of production, businesses closures, reduced demands, and disruption to supply chains and to financial markets. These effects will have some impacts on financial reporting especially in the application of some IFRS/IAS/AASP standards.

In this assignment you are required to answer the following questions:
1. List Eight accounting considerations that are impacted by the Coronavirus 2019 disease.
2. Choose Five of the Eight you listed above and provide a brief explanation for each of these Five considerations (One paragraph for each). (Limit those Five to those that are discussed in our unit ACT 204. This means that you are not allowed to discuss those that were not covered in our unit).
3. Choose Two of these Five and discuss them in detail as they relate to a public company of your choice. This means, you are to choose a public company and go through its financial report to understand its operations. Then, discuss the coronavirus impact on these two accounting considerations as they apply in the chosen company.

For example:
Accounting for inventories: (Not to be used in your answers)
Accounting standards (IAS 2/ AASB 102) sets the guidelines for accounting for inventory. So by explaining initially how the standards apply to inventory, you then need to discuss the impact of COVID-19 on accounting for inventories for example on writing-down inventories due to lower prices, or inventory obsolescence due to lower sales of the company of choice… etc…
You need to remember, that each company will be in a different situation than others depending on the different risks assessment as this vary based on locations, industry, and future evaluation of the economic lockdown and performance. Hence, your explanation needs to consider the risk assessment for your chosen company and its specific operating market. In this, you may consider, the location of your company, its suppliers, its customers, prices, shipment, etc….

Answer 1

COVID 19 and Accounting Considerations

COVID 19 or Corona virus out break brings an uncertainty all over the world. All the sectors of economy namely, Primary, secondary and Tertiary sectors were becoming stuck and the Economies become depressed due to the absence of production.

All most all the business has stopped their operations in order to prevent the out break of virus. As far as the accounts department also compel to follow some restrictions or considerations in their procedures. Here try to convey the Accounting considerations associated with COVID 19 (In focus of IFRS)