The Accounting Standards Board (ASB) has issued guidelines on accounting implications for COVID-19
June 01, 2020
South African Accounting Academy
The effect of the lockdown and the ongoing crisis means that the economy will experience a significant downturn, while there will be an increased need for government services and assistance. Areas that could be affected as a result of the crisis include the following:
Construction, maintenance and related activities may be curtailed depending on whether they are essential. This could impact the completion of entities’ capital projects and planned maintenance.
Public facilities may not be operational and certain services may not be provided as a result of the lockdown (and beyond). This could impact the revenue of entities as well as the ongoing demand for services.
There may be an increased demand for government:
Services such as medical services, the provision of water and other sanitation services, and the provision of temporary housing or accommodation.
Assistance and support to employees, unemployed citizens, businesses, NGOs, etc. due to the reduced activity in the economy.
As some consumers of goods and services, taxpayers and other may be unable to work or earn revenue during the lockdown period, there is a potential increase in the non-payment for services such as water, electricity, property taxes, levies, etc. that are due to government entities.