IFRS in Focus April 2020 (Accounting considerations related to the Coronavirus 2019 Disease) **Updated 29 October 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 IFRS in Focus discusses certain key IFRS accounting considerations related to conditions that may result from the COVID-19 pandemic. Key changes include clarifications on disclosures for 'Going concern' and 'Liquidity risk management', new subsections on 'Dividends and capital management' and 'Contracts to buy/sell commodities', added guidance for idle assets in 'Acquisitions and disposals', as well as clarifications in 'Share-based payments', 'Government assistance' and 'Breach of covenants'.
Read more