COVID-19 has evolved into a pandemic affecting the entire world and resulted in almost all countries adopting lockdown strategies and businesses suddenly finding themselves in very different circumstances to what they would have imagined 12 months ago. The full impact of this will not be seen in the financial statements for the years that ended on 31 December 2019 but will affect the current 2020 year.
The Financial Reporting Faculty has created a checklist for the UK Institute of Chartered Accountants in England and Wales to assist companies and accountants with some of the major factors to consider on the preparation of the financial statements with early 2020 year ends and subsequent year ends. This also needs to be taken into very careful consideration by auditors and what impact it could have on their audit reports.
