ICAI News: Maintaining global accounting standards during a pandemic, CAs across the world to begin fresh discussions
In a first, noting the hardships during the current lockdown situation in many countries, global chartered accountants now want to get together to find out the best possible solutions to work and maintain accounting standards during the Pandemic situation in the future.
Setting a goal to initiate discussions, these global accounting leaders will get under one platform on April 13 to address the situation, especially when it comes to reporting and assurance.
Indian chartered accountants body — ICAI along with global bodies such as IFAC, CAPA, SAFA, AFA, CAW, Edinburgh Group and others shall be discussing these challenges through a webinar.
But what lead to such a move?
Chartered accountants feel that to deal with COVID-19 pandemic various governments are taking drastic measures, including locking down of entire country to reduce the impact of this catastrophe. These disruptions are hugely impacting businesses significantly and bring with it several issues and challenges to preparers of financial statements and auditors.
The aim of this discussion is to develop a guide for all accounting and assurance professionals to be followed in such situations.
Especially, to highlight issues related to Audit, Financial Reporting, Business Continuity & Crisis Management, Professional & Personal Wellness, and a lot more.
Several government sections have assigned ICAI to take the discussion forward.
“It will be the advisory and guidance which will be discussed and raised issues will be answered by global leaders to explain for preparers and auditors to take care COVID impact on Financial statement as on 31.3.2020. Since India has adopted the IFRS and converted them into Ind As to suit the local need, today the entire globe uses the IFRS or carve out the version of IFRS and this unique platform will give them solutions in one voice. Following the same all corporates and auditors will be benefited as their financial statements are used cross border being multinational organisations,” said Atul Gupta, President of ICAI.
Moreover, Khazar Kotwal, Partner, Deloitte India noted that in the US, the SEC released a public statement regarding the importance of disclosures related to COVID-19, particularly forward-looking disclosures to provide investors and the markets with information necessary to make informed decisions.”This is particularly important since historical information may be relatively less significant. The FASB has provided relief to companies in the application of the lease standard whereby companies can choose to apply the modification framework as per the standard for any concessions (rent abatements or other economic incentives) or account for them outside the modification framework i.e as if they were enforceable rights included in the original agreement,” Kotwal said.