The Accounting Standards Board (ASB) has issued guidelines on accounting implications for COVID-19

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The Accounting Standards Board (ASB) has issued guidelines on accounting implications for COVID-19

• 01 June 2020
• Accounting
• 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.

Click here to download the full guide.

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