The effects of COVID-19 will likely result in indicators of impairment for many entities, driving an increase in impairment testing. In this reporting update we summarise some of the key impacts of COVID-19 on impairment assessments.
The spread of COVID-19 has seen an unprecedented response by governments, regulators and numerous industry sectors in Australia and around the world. The Australian response to this pandemic has seen the closure of our international and state boarders, significant restrictions on corporate Australia’s ability to operate, volatility and instability in financial markets and significant economic slowdown and uncertainties.
Impairment of non-financial assets is a key area of focus for entities, stakeholders and regulators alike. The effects of COVID-19 will likely crystalise indicators of impairment for many entities, driving an increase in impairment testing.
In this Reporting Update we summarise some of the key impacts of COVID-19 on impairment assessments through a series of frequently asked questions. The reporting update covers the following topics:
Refer to the attached Reporting Update to find out more.
If you have any questions, please reach out to your usual KPMG contact.
Australian resource centre on the financial reporting impacts of coronavirus.
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