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)

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.
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Financial reporting; cash flows; non-financial assets; lease; expenses; inventories
Economics and Business, №1, 2022, pp. 101-115