Some issues of preparation and submission of financial statements in the conditions of COVID - 19 (ფინანსური ანგარიშგების მომზადების და წარდგენის საკითხები COVID - 19-ის პირობებში)

Abstract
The coronavirus pandemic has created uncertainties of an unprecedented scale in the global economy. Businesses experience disruptions of supply chain and significant losses. As a result of the decline in business activities, many enterprises around the world have been affected and millions of people have lost their jobs. Significant changes have taken place in the financial and commodity markets as well. Many governments have taken various measures to provide financial and non-financial assistance to the affected sectors of the economy, businesses and individual enterprises. All this has somewhat complicated the preparation of financial statements in accordance with the international standards (IFRS). Against the background of the current uncertainty caused by COVID 19, enterprises need to ensure the preparation of high quality financial statements, which play an important role in the proper functioning of the capital market. Changes in economic activity have led to the need of revision of the terms of existing contracts and agreements of the enterprises. For example, terms of contracts, leases, and various financial assets and liabilities with customers, as well as asset impairment and changes in the impairment testing assumptions, estimates of expected credit losses for loans and other financial assets, etc. Changes and uncertainties caused by the pandemics have a significant impact on the estimates of the elements of financial reporting. Nevertheless, each entity must ensure the application of the relevant requirements of IFRS in all of these matters. The present article highlights some of the challenges posed by pandemic uncertainties in the course of preparation of financial statements.
Description
 IAS 1 – Presentation of Financial Statements, 2021 (In Georgian).  IAS 2 – Inventories, 2021. (In Georgian).  IAS 36 – Impairment of Assets, 2021. (In Georgian).  IFRS 13 – Fair Value Measurement, 2021. (In Georgian).  IFRS 16 – Lease, 2022. (In Georgian).  Vardiashvili M. (2019). Some Issues of Measurement of Impairment of Non-Financial Assets in the Public Sector; https://publications.waset.org/10010307/some-issues-of-measurementof- impairment-of-non-financial-assets-in-the-public-sector, Vol:13, No:5  Vardiashvili M., Maisuradze M.( 2022), COVID 19 Pandemic and its Impact on Revenue Recognition. ISBN 978-9941-491-70-2 (pdf) https://tsu.ge/assets/media/files/7/siaxle%202022/2022---%20 konferencia.pdf  Maisuradze M. (2019). Key Aspects of Valuing and Impairing an Enterprise's Non- FinancialAssets.Monograph(InGeorgian). https://www.tsu.ge/data/file_db/economist_faculty /monogmaisur.pdf  Sabauri L., Kvatashidze N. (2022) Impact of the COVID-19 Pandemic on the Preparation of Financial Statements. ISBN 978-9941-491-70-2 (pdf) https://tsu.ge/assets/media/files/7/siaxle%202022/2022---%20 konferencia.pdf  Maisuradze M. (2018) APPLICATION OF THE ENTITY ASSETS MEASUREMENT METHODS IN PREPARING THE FINANCIAL STATEMENTS Ecoforum Journal Vol 7, No 3 (2018). http://www.ecoforumjournal.ro/index.php/eco/article/view/827/523  Tokar M., Kumar S. (2020), Applying IFRS Standards in 2020— Impact of COVID- 19, https://www.ifrs.org/content/dam/ifrs/news/2020/inbrief-covid19-oct2020.pdf  IOSCO Statement on Importance of Disclosure about COVID-19 The International Organization of Securities Commissions (IOSCO) encourages issuers’ fair disclosure about COVID-19 related impacts. Madrid, 29 May 2020. https://www.iosco.org/library/pubdocs/pdf/IOSCOPD655.pdf  Clearly IFRS — Accounting Considerations Related to Coronavirus Disease 2019 https://www.iasplus.com/enca/publications/publications/2020/clearly-ifrs-accounting-considerationsrelated- to-coronavirus-disease-2019  IFRS 16 and COVID-19: Accounting for COVID-19-Related Rent Concessions Applying IFRS 16 Leases.  https://home.kpmg/xx/en/home/insights/2020/03/covid-19-financial-reporting-resourcecentre. html  https://www.grantthornton-bq.com/publications/bonaire/covid-19-impact-on-2020-financialstatements/  https://www.markspaneth.com/insights/industry/service/covid-19s-impact-4  https://assets.ey.com › ey-com › en_gl › topics EY -Applying IFRS - IFRS accounting considerations of the Coronavirus pandemic November 2020;  https://cdn.ifrs.org/content/dam/ifrs/project/ifrs-16-covid-19/ed-rent-concessions-beyond-30- june-2021.pdf (Proposed amendment to IFRS 16)
Keywords
Financial reporting; cash flows; non-financial assets; lease; expenses; inventories
Citation
Economics and Business, №1, 2022, pp. 101-115
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