IASB issued new standard IFRS 18
On 9 April 2024, the International Accounting Standards Board (IASB) published its new standard IFRS 18 Presentation and Disclosures in Financial Statements that will replace IAS 1 Presentation of Financial Sta…
Financial reporting considerations related to the war in terms of US GAAP
On 14 March 2022, Deloitte published Financial Reporting Alert 22-1 related to the impacts of the current war between Ukraine and Russia. The alert elaborates relevant accounting and reporting implications to be reflected in connection with the conflict, including the SEC reporting.
As a result of the conflict, entities will have to address impacts on similar areas whether they account under US GAAP or IFRS. We have described IFRS considerations in more detail in the article Financial reporting considerations related to the war where we have presented Deloitte’s new publication on the consequences of the war related to IFRS.
The Financial Reporting Alert 22-1 is specific to SEC filers and considers specifics of US GAAP guidance, reporting and disclosures with references to FASB codification and other relevant sources for US GAAP reporting framework as well as relevant considerations impacting the internal control framework.
The publication of 51 pages elaborates the number of areas that are most likely to be affected by the current conflict. The authors expect the following issues to be among the most pervasive and challenging ones for the companies:
- Supply-chain disruption
- Preparation of forward-looking cash flow estimates
- Recoverability and impairment of assets
- Loss of control, the ability to exercise significant influence, or cessation of operations
- Foreign currency
- Subsequent events
- Going concern
The publication helps companies to assess the impact on their particular cases and is available to the readers on the IASplus website.
This matter needs to be considered and is relevant for any not yet published YE21 financial statements as a subsequent event as well. Considering the impacts will probably be even more challenging for the financial statements with the balance sheet date after 24 February 2022.
