Small co- notes re covid?

What is the best note to the accounts for a small co regarding covid? has any one a sample note

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What is the best note to the accounts for a small co regarding covid? has any one a sample note

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By Wanderer
17th Sep 2020 17:05

peter51pjr wrote:
Small co- notes re covid?

What is the best note to the accounts for a small co regarding covid? has any one a sample note


Think almost everyone worldwide knows about Covid 19.

What exactly is the context as to why you think a note is required?

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By frankfx
17th Sep 2020 17:47

https://www.icaew.com/technical/financial-reporting/uk-gaap/uk-gaap-faqs...
concludes

''In these times of significant uncertainty it is likely to be useful to the users of the accounts to be transparent about risks faced and the assumptions used, and making disclosures which are as specific to the business as possible.''

Note to Accounts of Ever so tiny micro entity limited

Covid-19. Don't panic!

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Replying to frankfx:
RLI
By lionofludesch
17th Sep 2020 17:53

frankfx wrote:

https://www.icaew.com/technical/financial-reporting/uk-gaap/uk-gaap-faqs...
concludes

''In these times of significant uncertainty it is likely to be useful to the users of the accounts to be transparent about risks faced and the assumptions used, and making disclosures which are as specific to the business as possible.''

Note to Accounts of Ever so tiny micro entity limited

Covid-19. Don't panic!

Personally, I would only include a comment in FRS 102 accounts.

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By frankfx
17th Sep 2020 20:01

The fact that ICAEW invested time and members subs on the FRS 105 commentary, cut and paste no doubt, is ..... noteworthy.

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By Wanderer
17th Sep 2020 18:02

ICAEW wrote:

'' it is likely to be useful to the users of the accounts.....''

Personally I think that's pretty unlikely!
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Replying to Wanderer:
RLI
By lionofludesch
17th Sep 2020 18:22

It shows that the directors have considered it.

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By Wanderer
18th Sep 2020 01:38

Well probably not, more likely to show that the accountant has bunged some boiler plate note into the accounts and directors neither understand it nor care.
You, yourself, have said "Personally, I would only include a comment in FRS 102 accounts." so who exactly are all these 'users' of FRS105 accounts who find this so useful as stated by the ICAEW?

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Replying to Wanderer:
RLI
By lionofludesch
18th Sep 2020 06:22

Wanderer wrote:

Well probably not, more likely to show that the accountant has bunged some boiler plate note into the accounts and directors neither understand it nor care.
You, yourself, have said "Personally, I would only include a comment in FRS 102 accounts." so who exactly are all these 'users' of FRS105 accounts who find this so useful as stated by the ICAEW?

I don't really approve of FRS 105 accounts. I think they go too far. But I wasn't consulted.

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RLI
By lionofludesch
17th Sep 2020 17:46

I wrote one - doubt if it's relevant now six months later.

I just mentioned that Covid had created uncertainty but the directors were confident that the company's finances were sufficiently robust and the going concern basis was appropriate. And so it has proved. So far.

The issue is not whether folk have heard of Covid. It's what effect that might have on the company. Some will bat on as normal. For others it'll be disastrous.

I wouldn't recommend using some standard template. Write your own. It's not hard. A couple of sentences will be grand for most companies.

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By Bo Peep
18th Sep 2020 09:59

For FRS 102 1A accounts I have tended to add in a note relating to PBSE which merely refers to the economic uncertainty, any adverse impact on business, whether it is adjusting or non-adjusting, going concern status and directors confidence.

I have also slotted in a similar paragraph within the directors report - Going concern and COVID-19, which refers to the PBSE note to the accounts.

I've seen some with reference to CJRS, grants and interruption loans and some without. Every company is different and I advise cobbling something together that fits the bill for your co.

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John Toon
By John Toon
18th Sep 2020 10:35

There are plenty of notes you could include: PBSE, Going Concern, impairment etc. Depends on what is relevant to the client and their particular circumstances

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