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COVID-19 Resources

COVID-19 Resources

Financial reporting resources for dealing with the effects of the novel coronavirus (COVID-19).
Deloitte Authored Content
Need to know - April 2020 (Accounting considerations related to Coronavirus 2019 Disease) **Updated 5 May 2020**
As the pandemic increases in both magnitude and duration, entities are experiencing conditions often associated with a general economic downturn. This includes, but is not limited to, financial market volatility and erosion, deteriorating credit, liquidity concerns, further increases in government intervention, increasing unemployment, broad declines in consumer discretionary spending, increasing inventory levels, reductions in production because of decreased demand, layoffs and furloughs, and other restructuring activities. The continuation of these circumstances could result in an even broader economic downturn which could have a prolonged negative impact on an entity’s financial results. This Need to know discusses certain key IFRS accounting considerations related to conditions that may result from the COVID-19 pandemic.

Key changes made in this edition of Need to know include new sections on alternative performance measures, cash and cash equivalents, capitalisation of borrowing costs and exchange rates. A subsection has been added to consolidation, addressing reporting time lags and consistency of accounting policies and the section on lease contracts has been updated to reflect the publication of the exposure draft by the IASB. Changes were also made to the sections on revenue from contracts with customers, government assistance, income tax and interim financial reports. Please refer to Appendix A of the publication for more details on the changes made.
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Find additional COVID-19 guidance and insights on Deloitte’s Combating COVID-19 with resilience site.