ANSWER
:
Summarized the information provided in the given question;
i.e.., IAS 10: Events after the Reporting Period addresses two
issues: adjusting events, namely, those events that provide
evidence----
Discussing in respect
of each of the companies, the potential management conclusions of
the impact of the Coronavirus on end of year reporting, mindful of
IAS 10 :
COVID-19 will be a factor in an
entity’s analysis of estimates made in the preparation of the
financial statements, including those related to the expected
credit loss on receivables, inventory obsolescence, impairment
analyses, variable and contingent consideration estimates, and
other factors. Whilst the events stemming from COVID-19 are
extremely volatile, entities will nevertheless be required to
consider conditions as they existed at the reporting date when
evaluating subsequent events.
Given the economic environment and
the likelihood that events may occur rapidly or unexpectedly,
entities should carefully evaluate information that becomes
available after the end of the reporting period but before the date
of authorization of the financial statements. The amounts in the
financial statements must be adjusted to reflect events after the
end of the reporting period that provide evidence of conditions
that existed at the end of the reporting period. Events that are
indicative of conditions that arose after the reporting period are
non-adjusting events. They are not reflected in the recognition or
measurement of items in the financial statements, but require
disclosure when material.
China- Reporting Date: 31-
Oct:
Spread Reported in Nov
19:
- In the case of Company A in China,
the spread reported in Nov 19 which is after the reporting date.
Since the events that are indicative of the conditions arose after
the end of the reporting period, these are to be treated as
non-adjusting events. So it is appropriate to consider that the
effects on the company are the result of events that arose after
the reporting date that may require disclosure in the financial
statements but would not affect the amounts recognized.
- If non‑adjusting events are
material, an entity is required to disclose the nature of the event
and an estimate of its financial effect. The estimate does not need
to be precise. It is preferable to provide a range of estimated
effects as an indication of impact to not providing any
quantitative information at all. However, where quantitative effect
cannot be reasonably estimated, qualitative description should be
provided, along with a statement that it is not possible to
estimate the effect.
UK- Reporting Date:
31-Dec:
Spread Reported in Feb
2020:
- In the case of Company B in UK
also, the spread reported after the reporting date. Since the
events that are indicative of the conditions arose after the end of
the reporting period, any material events are to be treated as
non-adjusting events, which may require disclosure in the financial
statements but would not affect the amounts recognized.
- If non‑adjusting events are
material, an entity is required to disclose the nature of the event
and an estimate of its financial effect. The estimate does not need
to be precise. It is preferable to provide a range of estimated
effects as an indication of impact to not providing any
quantitative information at all. However, where quantitative effect
cannot be reasonably estimated, qualitative description should be
provided, along with a statement that it is not possible to
estimate the effect.
- However if the company has business
in China and regarding to this if there are any events that has a
material impact on the business these should be treated as
adjusting events and necessary adjustments in the financial
statements should be made to reflect the events to give a fair
presentation.
Ghana- Reporting Date:
31-Mar:
Spread Reported in Mar
2020:
- In the case of the Company C in
Ghana, the spread reported before the reporting date. Since the
events that are indicative of the conditions arose before the end
of the reporting period, any material events are to be treated as
adjusting events. The amounts in the financial statements must be
adjusted to reflect events after the end of the reporting
period.
- However, there is no universal
‘flip’ point at which entities should view all COVID‑19 related
impacts to be adjusting events. Instead, each event should be
assessed to determine whether it provides evidence of conditions
that existed at the end of the reporting period or whether it
reflects a change in conditions after the reporting date.
..............................................................xxxxxx..................................................
PLEASE-----PLEASE KINDLY
UP-VOTE. IT HELPS ME A LOT. THANK YOU IN ADVANCE.