ICAI Advisory on Accounting and Assurance related issues for FY 2019-20 due to Covid-19 Disruptions

ICAI Advisory on Accounting and Assurance related issues for FY 2019-20 due to Covid-19 Disruptions

ICAI has issued an advisory on impact of corona virus on financial reporting and resultant auditors consideration.

The advisory/guide is applicable

(a) to entities to whom Ind AS is applicable and

(b) the entities to whom AS is applicable (Companies to whom Companies, Accounting Standards Rules, 2006 applies and Non-corporate entities to whom AS issued by ICAI is applicable)

The attention of the members has been drawn to specific areas of concern with respect to the implementation of various Accounting Standards. For example, Inventory Measurement (Ind AS 2 and AS 2) and Impairment of Non-Financial Assets (Ind AS 36 and AS 28), Ind AS 109 Financial Instruments, Ind AS 113 Fair Value Measurement, Ind AS 116, Leases, Ind AS 115, Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, Ind AS 1, Presentation of Financial Statements, Ind AS 10, Events after the Reporting Period etc.

For audits the advisory/guide gives areas which require special attention, for example risk of Material Misstatements and Materiality, Reasonable Estimation, valuation of inventories, SA 560, Going concerns etc.

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