IMPACT OF COVID-19 PANDEMICS, ON FINANCIAL STATEMENT AND THE IMPLICATION OF THE INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)

IMPACT OF COVID-19
PANDEMICS, ON FINANCIAL
STATEMENT AND THE
IMPLICATION OF THE
INTERNATIONAL FINANCIAL
REPORTING STANDARDS (IFRS)
Egbe, John Edogi
Department of Vocational Education
Faculty of Education, University of
Calabar,
Cross Rivers State Nigeria.
egbe4u@gmail.com
ABSTRACT
The impacts of the COVID-19 pandemic had
caused a significant deterioration in the
national economy and increased the risk of
economic uncertainty. COVID-19 scourge had
caused considerable arguments among
stakeholders on companies' ability to maintain
its going concern status. The public and
private companies are trying to cope with the
damages of this crisis on their businesses. The
central point of this research is to assess the
impact of COVID-19 Pandemics on Financial
Statement and its implication on the
international financial reporting standards
(IFRS). The specific objectives are to evaluate
the effect of COVID-19 on the going concern,
fair value measurement, and impairment of
non-current assets on the firm's financial
statement, from the viewpoint of Professional
Accountants in Cross River State. Measures
adopted by governments and private
stakeholders to contain the outbreak were
also considered. The main instrument used for
data collection was the questionnaire. The
questionnaires were administered to two
hundred and ten (210) respondents randomly
selected from the
population of 2,115 Professional Accountants
in Cross River State. The
study
adopts
a
descriptive-analytical
approach and has constructed a well-
structured
five-point
Likert
styleBook of Abstract
questionnaire as the study tool. The data
analysis result reveals that there is a
significant impact of COVID-19 pandemic on
companies' financial statements, considering
the implication of the International Financial
Reporting Standards (IFRS). Thus, the
researchers recommend, among others, that
professional accountants should carry out a
comprehensive assessment of the impact of
COVID-19 on the financial statement using
other variables and components of the
International Financial Reporting Standards
(IFRS). Again, the government should consider
tax-related issues, such as tax rate, tax effect,
tax burden, and compliance that could
negatively impact the firm's operations in the
short or long term. However, fair value
measurements,
mostly
of
financial
instruments and investment property, should
be reviewed to reflect the actual values in the
statement of financial position.
Keywords: COVID-19, pandemic, fair value,
financial statement, financial reporting

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