IFRS Illustrative Disclosures - COVID-19 Supplement (December 2021)

BDO has published its 31 December 2021 illustrative financial statements, which are available here. Along with the Q1 31 March 2021 and H1 30 June 2021 illustrative interim financial statements, these publications demonstrate the changes in IFRS that should be reflected in an entity’s financial statements, along with some examples of disclosures relating to the effects of COVID-19.

During the year 2020, pervasive lockdowns and movement restrictions due to the COVID-19 pandemic significantly affected economic activity. Many entities faced significant downturns in revenue, profitability and liquidity. During the beginning of 2021, continued effects of the pandemic were experienced with some jurisdictions encountering further waves of the pandemic. During the latter part of 2021, as the effects of the pandemic receded in some parts of the world, many economies experienced a rebound in economic activity. However, still many uncertainties remain with respect to the possible future course of the pandemic and its effects, including the ongoing supply chain disruptions experienced worldwide. Effects of the COVID-19 pandemic vary significantly from entity to entity. Entities need to carefully consider financial reporting implications arising out of the effects of the pandemic on its operations.

In the year 2020, BDO had published a COVID-19 Supplement, which included a COVID-19 IFRS Checklist and illustrative disclosures. This publication is an update to the 2020 COVID-19 supplement, in light of developments during the 2021. This update includes additional guidance and illustrative disclosures. The purpose of this COVID-19 supplement is to provide additional matters for entities to consider in preparing their financial statements, including illustrations of certain disclosures. The presentation and disclosure requirements of IFRS are substantial, therefore, this publication cannot adequately replace consulting the full requirements of IFRS or complete disclosure checklists, which summarise all disclosure requirements within IFRS.

This publication is divided into two major sections:

➢ Section A: COVID-19 IFRS disclosure checklist

This section provides brief examples of areas of financial statements that may be affected by COVID-19. Preparers of IFRS financial statements may find this checklist useful in identifying disclosures which may need to modified or added.

➢ Section B: Illustrative Disclosures

This section provides illustrative disclosures for some of the items noted in Section A.