Bloomsbury?s A Quick Guide to Impact of COVID 19 on Financial Reporting by Santosh Maller 2nd Edition March 2021

Description

About the book
2020 has been a year shaped up by Coronavirus (COVID-19). This pandemic
has resulted in widespread economic uncertainty and disruption of businesses
across the world. There have been far reaching implications on financial
reporting and this may continue for next couple of years. These circumstances
potentially present entities with several challenges when preparing their
financial statements for year ended 31 March 2021 and subsequent financial
results.
This book covers some of the key financial reporting implications that
companies need to consider and, also, possible approaches that they may
consider to dealing with the same keeping in view the business objectives,
financial covenants and the accounting standards.
Key consideration under COVID-19 for financial reporting consist of: asset
impairment; inventory valuations and write downs; revenue recognition; debt
covenants and debt servicing; lease rental concessions; foreign exchange
accounting and losses/gains due to extreme volatility; litigation resulting from
contractual defaults, invocation of force majeure clauses and potential
exposure; Insurance claims for losses during shutdown period or loss of lives;
and going concern.
The Companies shall ensure that they provide sufficient disclosures in the
notes to the financial statements with information about the entity that's useful
to existing and potential investors, creditors, lenders, and other stakeholders.
This book highlights the existing financial reporting requirements under
Companies (Indian Accounting Standards) Rules, 2015 and Companies
(Accounting Standards) Rules, 2006 that should be considered when
addressing the financial effects of COVID 19 when preparing annual financial
statements and possible audit approaches that can be considered relevant.
The role of auditors at this stage would be under increased scrutiny as the
auditors have responsibility to complete the audit work in accordance with

professional standards and ethics requirements. Under the current
circumstances, auditors must recognize that the manner in which they
conducted the audits in the past may need significant modification to address
the challenges and uncertainties arising out of the impact of COVID-19.
Additionally, irrespective of the challenges and uncertainties, there should not
be any dilution in the reporting or non-compliance with the auditing standards
in carrying out the audits.
This book is an attempt to cover the requirements of the accounting standards
and auditing standards, with illustrative examples and COVID-19 related
extracts from published financial statements of companies.
The readers would find this book very useful.
Key Highlights
Covering:
• Key accounting impact, with real-life examples and illustrations, under
Ind AS and AS due to COVID-19.
• Key COVID-19 considerations under auditing standards with real-life
examples of KAM/EOM/qualifications in audit reports.
• Real-life practical examples and extracts from Companies' financial
statements/results.
• Simple and concise summaries of accounting and auditing literature.
About the author
CA Santosh Maller
The author is an Associate Chartered Accountant, having secured rank in CA
exams, with about 16 years of extensive experience in Accounting, Audit and
Assurance fields. He has worked with several diverse companies, Indian and
multinational companies, on IFRS and Ind AS GAAP conversion
engagements, in India and overseas, in manufacturing, telecom, real estate,
shipping and logistics. He has been a member of IFRS desk/accounting
technical professional practice group of a big audit firm for over 8 years. He
has had a stint in London, during which he was closely associated with the
IFRS standard-setting projects of the International Accounting Standards
Board, such as, revenue, leases and financial instruments.
The author has been serving as a special invitee for Ind-AS on the ICAI’s,
Accounting Standards Board and has been part of many study groups of the
ICAI. He has authored several media articles on Accounting and Valuation
and has been an eminent speaker and technical trainer on financial reporting
and corporate governance. The author has also authored several other books
on Ind AS and taxation.