COVID-19, while reported to already exist in December 2019, was actually made known, and impact escalated only in 2020. As a matter of fact, on 30 January 2020, the World Health Organization declared the Covid-19 (COVID-19) to be a public health emergency.
On March 11, 2020, the World Health Organization (WHO) declared a global pandemic for coronaviruses. Consequently, its subsequent identification and human-to-human spread is not considered evidence about an existing condition as at 31 December 2019 according to International Accounting Standard 10 Events After the Reporting Period.
When preparing financial statements, it is important to consider:
- Going concern
- Adjusting and non-adjusting events after the reporting period.
Also, what if financial statements ending after 31 December 2019?
Read more in the document.