How to prepare a financial statement in the times of COVID?

What should you pay attention to when preparing the financial statements for 2020?

Business Continuity Assumpsion

Although the regulations have not changed, to meet the criteria for the business continuity assumption presented in our financial statements, a number of additional factors are to be considered due to the negative impact of the pandemic. Apart from the obvious ones such as the industry or geographical area of operation, the financial condition of customers, suppliers, fulfillment of credit conditions and financial liquidity should be considered more broadly. The conducted analysis of risks and threats concerns not only the financial but also the operational sphere. Occurring dangers include among others: disruption of the supply chain, lack of employees necessary to conduct operational activity or recovery plans. The negative scenarios should predict the further development of the pandemic and its even more severe than currently observed business consequences. A detailed description of explanations of the circumstances is also very important in the case of no threat to further activity, both on the day of preparing the report and its approval. Events after the balance sheet date that have an impact on the assessment of business continuation require adjustments both in the books and in the statement.

Downloads

• PKF Alert - Jak sporządzić sprawozdanie finansowe w czasach COVID.pdf [PDF]
• PKF Alert - How to prepare a financial statement in the times of COVID.pdf [PDF]
• PKF Hinweis - Wie erstellt man einen Jahresabschluss in COVID - Zeiten.pdf [PDF]