AC 17-2 Financial Reporting - Majan University College
Learning outcome 1: Develop understanding of relevant accounting principles and various rules/regulations applicable for preparation of financial statements as per international financial reporting standards (IFRSs).
Learning outcome 2: Develop the ability to identify and apply IFRSs principles in a variety of scenarios thus leading to fair presentation of financial performance/position.
Covid-19 has substantially affected all areas of business. Corporate reporting is no exception to current scenario and financial reports of companies will paint quite a different picture as compared to past. Various accounting standards which in normal circumstances are not applied so rigorously will gain tremendous importance now. Two such standards are IAS 10 Events after reporting period and IAS 36 Impairment of assets.
The way the companies apply these standards on their financial statements will have material impact on the financial performance and financial position of the company.
Keeping in view current economic scenario and the way Covid-19 has affected economic activities, write a report on application of the above two standards. Your report should specifically cover discussion on;
1. Introduction covering theoretical underpinning of IAS 10 and IAS 36.
2. Recognition and measurement criteria of IAS 10 and IAS 36.
3. Relevance of IAS 10 in current economic scenario. Give specific examples of items in financial statements which will be affected by this standard.
4. Relevance of IAS 36 in current economic scenario. Give specific examples of indicators arisen due to Covid-19 assets are impaired and explain the impact of this impairment on financial statements.
5. An appropriate conclusion.