How to account for Inventory write-offs and costs due to civil unrest in SA

10 January 2022
Accounting
South African Accounting Academy

This material highlights the requirements within IFRS Standards when considering the appropriate profit or loss presentation for inventory losses, other costs directly associated with inventory losses and delays due to the unrest.

Entities are reminded to consider the impact of the events related to the unrest on both interim and annual financial statements.

Click here to download the Educational Material:

https://saicawebprstorage.blob.core.windows.net/uploads/resources/Educational-material_-Presentation-of-Inventory-write-offs-and-costs-as-a-result-of-the-civil-unrest-in-South-Africa.pdf

How does this afect you and your clients?

Relevance to Auditors, Independent Reviewers & Accountants:

As an auditor and independent reviewer, you need to consider whether the financial statements comply with the relevant financial reporting framework. If not, you should amend your opinion or conclusion accordingly.
As a compiler, you need to compile the financial statements in accordance with the relevant standards, ensuring that inventory write-offs and costs are fairly presented.
You will need to advise your clients, who were affected by the civil unrest in SA, accordingly.

Relevance to Your clients:

Those clients affected by the civil unrest in SA, need to consider the appropriate profit or loss presentation for inventory losses, as well as other costs directly associated with inventory losses and delays due to the unrest. This is to ensure fair presentation.

To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update

Get all your CPD online. SA Accounting Academy (SAAA) offers Subscription Plans, Live Webinars, Webinars On-Demand, Access to Experts, Courses, Articles and more:
https://cpd.accountingacademy.co.za.