The impact of the Covid–19 pandemic on the formation statement of financial position

Last December it became known about the outbreak of a new virus – COVID–19. The spread of coronavirus infection and the announcement in this regard by the World Health Organization (WHO) of the beginning of the coronavirus pandemic, led to a failure of the system of economic activity in general in all countries of the world. This article is devoted to the preparation of financial statements in the context of a global problem- coronavirus pandemic. A significant problem has brought to mind the standards that professional accountants rarely refer to. The mentioned problem is still poorly understood, since the modern world has never encountered a situation of this kind. Based on the analysis of the current version of international financial reporting standards, the article presents a methodology for reflecting the consequences of the coronovirus pandemic in the statement of financial position. It was found that the outbreak of the virus had a significant impact on the preparation and presentation of the report on the financial position of the companies. The direct and indirect impact on the functioning of companies was not the virus itself, but the methods of fighting against it. A pandemic situation, in accordance with the provisions of IFSR 10, is not a corrective event, but a significant one. This means that companies, at a minimum, should reflect this in the notes when submitting the report. The final impact of the COVID–19 pandemic on the overall statement of financial position varies depending on the specific business risks and circumstances prevailing in the company.

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