The Coronavirus, or ‘COVID-19,’ was declared as a global health emergency by the World Health Organisation (‘WHO’) on 31 January 2020, following which national governments took action. As such, the effects of COVID-19 were generally a ‘non-adjusting event’ for financial reporting purposes, and forecasts, projections and associated assumptions used in preparing financial statements as at 31 December 2019 would reflect either little or no change. Financial statements will need to incorporate the effects of COVID-19 for reporting periods ending on or after 31 January 2020.
Entities in nearly every financial services sector are impacted and the financial reporting implications may be similarly broad. Precise effects will depend on the facts and circumstances of each entity. As the effects of the outbreak change and evolve, it may become difficult to distinguish which information, facts and circumstances should be incorporated into measurement as at period end and, which should result in potential subsequent event disclosure.
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