Question

Unit 1 explores financial reporting and the conceptual framework which are fundamental to every business entity. COVID-19, the global health pandemic has however affected every aspect of our existence today without exception. Accounting and financial reporting and those charged with governance now have to address the mitigation of additional financial risks as they relate to the well-being of their businesses.

Discuss three (3) accounting and financial reporting risks and their implications that have been heightened by the current pandemic situation. At least 2 relevant accounting standards (IASs /IFRSs) must be incorporated in your discussion.

Use APA referencing style and a minimum of three appropriate sources.

Answer 1

Fisrstly we have to determine whether the entity is a going concern, in such a case

Ind AS 1 applies hence all uncertainitues casted by pandemic have to ber evaluated

for eg - A travel co has to determine whether it will be able ti sustain in this envirinment

whereit has minimal business

second, Ind AS 10 has to be applied hence determine post Balance sheet events

Hence determine if there are events after b/s which tamper with true & fair vakue of statements

For eg:- an entity whiich has an reporting period of dec end and it determines it cannot pay its accounts payable with credit period as it has an cash flow crunch.