COVID-19 has not only affected the health of people across the globe but has also caused severe disturbances in the global economic environment which has a consequential impact on financial statements and its reporting.
As there has been a significant impact on businesses, professionals are advised to evaluate the impact of this disruption on the financial statements.
ICAI has issued accounting advisory on speciﬁc requirements of a few accounting standards that may need special attention from preparers of the financial statements, to ensure that the impact of COVID-19 is suitably considered in preparing and reporting of the ﬁnancial statements for the year ended March 31, 2020.
· What are the impact of the epidemic on demand for services and products, access to raw materials and components, and staffing?
· How far is the cash?
· What is the impact of the promised support measures on an individual customer?
· Lastly, Evaluating business continuity and properly report its effects will be challenging for the professionals.