International & other relevant bodies

Since the outbreak of the Covid-19 pandemic a lot of guidance and commentary has been issued on the financial reporting and audit implications of Covid-19. Set out below is guidance and amendments to standards published by International Standard setters and other relevant bodies which may be of use to members.

Accountancy Europe

Accountancy Europe unites 51 professional organisations from 35 countries that represent 1 million qualified accountants, auditors and advisors. Accountancy Europe has developed a coronavirus resource webpage which collates relevant resources in relation to the impact of Covid-19 from European professional accountants.

Useful links 

• Coronavirus impact on auditing for 2019 year-ends and beyond – This publication highlights the main matters for auditors to consider including obtaining audit evidence, going concern and auditor’s reporting;
• Coronavirus impact on ongoing audits – This publication builds on a previous report ‘Coronavirus impact on auditing for 2019 year-ends and beyond and highlights further matters for consideration by auditors including

• identification and assessment of risks;
• response to assessed risk;
• auditor’s report and communication; and
• the auditor’s involvement related to government support   

International Auditing and Assurance Board (IAASB)

The International Auditing and Assurance Standards Board (IAASB) has created a COVID-19 webpage to help stakeholders navigate the challenges presented by the COVID-19 outbreak. including guidance on audit considerations related to COVID-19. The guidance lists relevant International Standards on Auditing (ISA’s) and sets out specific matters to be considered by auditor’s in the context of the Covid-19 pandemic.

The IAASB has also published a number of staff alerts to highlight key areas of focus for auditor’s when carrying out audit engagements in accordance with the ISA’s in light of the Covid-19 pandemic, including;

Going Concern in the current evolving environment – Audit considerations for the impact of Covid-19
Subsequent events in the current evolving environment – Audit considerations for the impact of Covid-19
Audit reporting in the current evolving environment due to Covid-19
Auditing accounting estimates in the current evolving environment due to Covid-19
 
International Accounting Standards Board (IASB)

The IASB published a document ‘IFRS 16 and Covid-19’ in response to questions regarding the application of IFRS 16 Leases to rent concessions granted as a result of the Covid-19 pandemic. The document is prepared for educational purposes, highlighting requirements within IFRS 16 and other IFRS Standards that are relevant for companies considering how to account for rent concessions granted as a result of the covid-19 pandemic.

In April 2020, the IASB proposed an amendment to IFRS 16 Leases, and following consultation, issued an amendment to IFRS 16 to make it easier for lessees to account for covid-19 related rent concessions such as rent holidays and temporary rent reductions. The European Financial Reporting Advisory Group (EFRAG) submitted its endorsement advice letter to the European Commission recommending its endorsement. 

The IASB has also published a document IFRS 9 and covid-19 – accounting for expected credit losses in response to questions regarding the application of IFRS 9 Financial Instruments during this period of economic uncertainty. The document was prepared for educational purposes, highlighting requirements within the standard relevant to companies considering how the pandemic affects their accounting for expected credit losses.