Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Interesting Articles

| More

Covid-19 Disruptions - ICAI Advisory on Accounting and Assurance related issues for F.Y - 2019-20

Posted On: 2020-03-31 14:17:49

COVID-19, an infectious disease caused by a novel Coronavirus is exponentially spreading illness throughout the globe and has been recognized as a global pandemic by the WHO. The various governments are taking drastic measures, including locking down of entire country to reduce the impact of this catastrophe.

The adverse impact of this global pandemic can vary from nation to nation, industry to industry and above all entity to entity. The effect depends upon the nature and extent of business connectivity of the individual entities with the nations more seriously affected by this pandemic. Apart from the health and safety of mankind, COVID-19 has unfavourably affected the economic environment which in turn has consequential impact on the results in the financial statements and reporting.

There is also a need to advise the preparers of financial statements to ensure that the potential impact of COVID-19 is suitably considered in preparing and reporting their financial statements for the year ended March 31, 2020. Considering all the above factors, in order to guide the preparers and auditors, the Institute of Chartered Accountants of India (ICAI), Regulator of Chartered Accountancy profession in India, has developed an Advisory on "Impact of Coronavirus on Financial Reporting and the Auditors Consideration" highlighting few important areas which require particular attention in respect of financial statements for the year 2019-20. ICAI Advisory is consistent with those provided in other jurisdictions.

CA. Atul Kumar Gupta, President, ICAI said "Chartered Accountants are always committed as professionals to ensure that financial reporting continues to be of high quality and reliable based on applicable accounting framework and, audit opinions are based on performing the best audit procedures laid down in standards on audit."

Specific requirements of a few Accounting Standards that may need special attention are indicated in this Accounting Advisory. The said Advisor only draw the attention of preparers to some of the important requirements of Indian Accounting Standards (Ind AS) and Accounting Standards (AS), and this is not meant to be exhaustive and may differ based on specific facts, circumstances and business of respective preparers.

The advisory has been prepared for:

1. Entities to whom Ind AS is applicable and
2. Entities to whom AS is applicable, viz,

Companies to whom Companies, Accounting Standards Rules, 2006 is applicable and Non-corporate entities to whom AS issued by ICAI is applicable

Accounting advisory guides on the key areas that need to be considered during these challenging times as given below.

- Inventory Measurement
- Impairment of Non-Financial Assets such as PPE, Goodwill and Intangibles
- Financial Instruments (Impairment Losses, Fair Value Measurement and Hedge Accounting)
- Leases
- Revenue
- Provisions, Contingent Liabilities and Contingent Assets
- Modifications or Termination of Contracts or Arrangements
- Going Concern Assessment
- Income Taxes
- Consolidated Financial Statements
- Property, Plant and Equipment
- Presentation of Financial Statements
- Borrowing Costs
- Post Balance Sheet Events
- Interim Financial Reporting

Salient Points w.r.t. Auditing Advisory are:

Further, Auditors are also advised by the ICAI to carefully evaluate circumstances prevailing in their audits and assess risk accordingly when applying the concepts given in the Advisory in their audits. Following are salient feature of Auditing Advisory:

The advisory covers the areas which require special attention of auditors in current scenario like Valuation of Inventory on a date other than date of financial statements, Audit of Consolidated Financial Statements where Components/component auditors are located in severely affected places, Subsequent Events or Events after Reporting date, Going Concern etc.

It has been advised that auditors have a public interest obligation to complete the audit work in accordance with professional standards and ethics requirements and under the current circumstances, Auditors must recognise that the specific aspect they need to report to address the challenges and uncertainties arising out of the impact of COVID-19.

President, ICAI further added "I am sure the advisory will meet the objective of its release and help both preparers and auditors in their respective areas. In these challenging times, this advisory will surely help Chartered Accountants in discharging professional responsibilities more effectively."

For referring to the Advisory, please visit ICAI website

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Rollover Report for May - June 2020: Angel Broking

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Q4 GDP

Mr. Dhiraj Relli views on GDP Numbers - HDFC Securities

Banking Sector Update - NIM compression on the cards - HDFC Securities

May series ends with a bang: Angel Broking

May 2020 F&O Series Expiry - Mr. Nandish Shah, Technical Research Analyst, HDFC Securities

Views on Impact of Locusts Attack on Agriculture - Acuité Ratings & Research

ICAI establishes Center for Audit Quality

Bharti Telecom raised over Rs. 8433 crores through Accelerated Book-build offering of equity shares of Bharti Airtel

SATYA MicroCapital raises INR 105 crore equity funding from Japan-based Gojo & Company Inc.

Mr. Rajnish Kumar, Chairman, SBI & IBA on the announcements made by RBI today

Views of Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on RBI announcement

Views of Mr. George Alexander Muthoot, MD, Muthoot Finance on RBI announcement today

Views of Ms. Anagha Deodhar - Economist, ICICI Securities on the RBI announcement today

Views on RBI Policy announcement today - Federal Bank

RBI Monetary Policy (May 2020) by Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Religare Finvest Ltd. on today's monetary policy by RBI

RBI monetary policy announcement - Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

RBI's proactive measure will help revive economy: Dr.Niranjan Hiranandani

Mr. Dhiraj Relli views on today's announcement made by RBI

Views of Mr. R K Gurumurthy, Head - Treasury, Lakshmi Vilas Bank on the RBI announcement today

Suvodeep Rakshit, Vice President & Sr. Economist, Kotak Institutional Equities on RBI announcement

Suman Chowdhury, Chief Analytical Officer at Acuité Ratings & Research, on today's RBI announcement

General Insurance Sector Update - GDPI continues to decline due to Lockdown - HDFC Securities

Stress in Banking Sector to Continue: Geojit Financial Services

Banking Sector Update - What have banks said - HDFC Securities

Satyam Shivam Sundaram, EY India on measures announced by Finance Minister today

HDFC Securities: Mr. Dhiraj Relli views on Fourth Set of Economic Measures announced by Finance Minister

Structural intervention to spur investments - Ramesh Nair, CEO and Country Head (India) JLL

MNCs & their unlisted subsidiaries - A case of misplaced premium & forgotten risk

India Equity Strategy - FM's package: Addressing liquidity concerns - HDFC Securities

Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on package announced by FM

Mr. Rajnish Kumar, Chairman, SBI on FM's announcement

Central Government's Atmanirbhar Bharat Initiative - Tata Projects Ltd

FM Stimulus View: Mr. Shachindra Nath, Executive Chairman at Ugro Capital

Views on Finance Minister's Announcement - Acuité Ratings & Research Limited

Fiscal interventions set to do the heavy lifting

Views of Mr. R.K.Gurumurthy, Head - Treasury, Lakshmi Vilas Bank on the FM announcement today

Finance Ministry's announcement - Mr. Jyoti Roy, DVP Equity Strategist, Angel Broking Ltd

Mr. Dhiraj Relli views on Economic Package announced by Finance Minister - HDFC Securities

PM's announcement to impact stock market - Angel Broking

Views on Financial Relief Package announced - Acuité Ratings & Research Limited

View on IIP and CPI data - Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on the March IIP and April CPI

Prime Minister's Economic Package - Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

Cognizant - Uncertainty persists - 1QCY20 Result Review - HDFC Securities

Autos (Two Wheelers) - A changed landscape - Sector Thematic - HDFC Securities

All you want to know about Reliance Industries' rights issue

Tata Capital launches Commercial and SME Mobile app for hassle-free business loans

RBL Bank's Credit Card business aims to be significantly profitable despite COVID-19

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019