Dr. Hanne Böckem
Partner, Audit, DPP
KPMG AG Wirtschaftsprüfungsgesellschaft
On the occasion of the current multi-layered economic uncertainties, among other things as a result of the war in Ukraine, the distortions on the energy markets and the high inflation rates, the IDW published a Technical Note on 30 September 2022 on the consequences for IFRS and HGB financial reporting with a reporting date of 30 September 2022 or later.
It explains how the current risks and uncertainties - also with regard to a predicted recession in Germany and the EU - affect corporate planning as a basis for forecasts and cash flows derived from them. Also addressed are selected accounting and valuation issues relating to financial instruments, the creation of transparency through appropriate reporting in the notes and management report, and the inclusion of a note in the auditor's report to highlight a matter relating to the existing uncertainties.
The comments supplement the previously published IDW Technical Notes on the Ukraine war and its direct and indirect effects on financial reporting and its audit.
The IDW's Technical Note can be viewed here.