Impact of the COVID-19 pandemic on the preparation of financial statements (COVID-19 პანდემიის გავლენა ფინანსური ანგარიშგების მომზადებაზე)
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
1. The unpredictability of the pandemic impact generates fundamental uncertainties. It casts doubt on the
ongoing operation of the enterprises. If the functionality assumptions are made during the financial reporting,
the enterprise is obliged to declare all the uncertainty factors. Applied reasonings, conclusions, and
compulsory volume for the information declaration are dependent on the specific situation, as its nature and
impact level on the enterprise, differ in every single case.
2. The limited paying capacity of the customers impacts the contractual relationships. In many cases, it becomes
necessary to amend the contracts – modify the contract costings. It is of utmost consideration to assess the
payment probability while amending the contract under uncertainty. It should be discussed as the changing
component of the payment.
3. In IFRS 16, the changes caused by pandemics, are important for the lessee’s. The board considers the
registration of the tenancy modification to be an easy task, accordingly, these changes do not include the
lessees. They should assess, as usual, if the rental exemption is actually a contract amendment, and process it
accordingly.
Description
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9. Thornton Grant https://www.fbk.ru/upload/presscenter/FBK%20Grant%20Thornton_%D0%92%D0%BB%D0%B8%D1%8F%D0%BD%D0%B8%D0%B5%20COVID_17.1
2.2020.pdf [Online] // https://www.fbk.ru/upload/presscenter/FBK%20Grant%20Thornton_%D0%92%D0%BB%D0%B8%D1%8F%D0%BD%D0%B8%D0%B5%20COVID_17.1
2.2020.pdf. - Grant Thornton.
Keywords
amendment in the contract; going concern; pandemic and financial statement
Citation
International Scientific Conference Dedicated to the Establishment of the University and the 100th Anniversary of the Faculty of Economics and Business “Covid 19 Pandemic and Economics”, Tbilisi, 2022, pp. 276-284