Impact of COVID-19 on Accounting and Financial Reporting
The economic impact and consequences of the coronavirus (COVID-19) pandemic are unclear, unprecedented and pervasive. This requires joint efforts and actions of various stakeholders to ensure consistent strategic and technical guidance is provided to businesses in real time.
There is a limited window to drive adequate responses to the imminent stress scenarios that have been posed to the economy due to the pandemic. These scenarios include the high likelihood of a recession, threats to business continuity and continuously evolving challenges on financial reporting.
Businesses will require guidance to ensure adequacy and consistency of responses and their applications to these scenarios.
OUR GUIDE TO COVID-19 FINANCIAL AND ACCOUNTING IMPLICATIONS
Accountants and Auditors Association under the sponsorship of UAE Ministry of Economy and the Securities and Commodities Authority (SCA) established a task-team of experts and practitioners to study the financial and accounting implications of COVID-19. The task-team, which includes experienced practitioners from the big accounting and auditing firms in the UAE, worked together to bring forward this detailed guideline on the accounting and financial reporting requirements that will need to be considered for the purpose of helping the UAE Business Community to overcome this unprecedented situation
The guideline discussed key business areas in relation to accounting and disclosure issues to be considered by the business arising from the COVID-19 outbreak in preparing the financial statements. It also illustrates additional key accounting considerations for a number of vital business economic sectors that has significant contribution to the UAE's GDP including Energy Industry (Oil & Gas, and Utilities), Banks and Financial Services Industry, Insurance Industry, Retail Industry, Construction Industry, Real Estate Industry and Manufacturing Industry.
External links related to the pandemic and its impact on financial reporting and audit
The UAE Accountants and Auditors Association has established this platform to address accounting and financial reporting challenges related to COVID-19 and to ensure consistent application of the current accounting and financial reporting standard.
Furthermore, we have complied below the list of external resources to help you understand the ongoing situation and its global impact on the practice and profession.
Note: This resource are created by external organizations and were not revised, developed and approved by UAE AAA. The UAE AAA is not responsible or liable for any indirect or direct implication as a consequence of the use, application or reliance on these resources.