QUESTION 1

IAS 10: events that provide evidence of conditions that existed at the end of the reporting period and

non-adjusting events: which are those events that are indicative of conditions that arose after

the reporting period that need to be reflected in the financial statements. Amounts recognized

in the financial statements are adjusted to reflect adjusting events, but only disclosures are

required for material non-adjusting events. Management's judgment is required in determining

whether events that took place after the end of the reporting period are adjusting or non-

adjusting events. This will be highly dependent on the reporting date and the specific facts and

circumstances of each company's operations. Coronavirus has overwhelmed the world in

various ways and at various times. China was the first to announce spread of the virus in

November, 2019. UK announced its first case of coronavirus in February, 2020 and Ghana

announced its first case in March, 2020. While company A resides in China, company B resides

in the UK and C resides in Ghana. Company A's financial reporting period ends on 31st

October each year; company B's financial reporting period ends on 31st December, each year

and company C's financial reporting period ends on the 31st of March each year. Management

of these companies may need to continually review and update the assessments up to the date

the financial statements are issued given the fluid nature of the crisis and the uncertainties

involved.

You are required to discuss in respect of each of the companies, the potential management

conclusions of the impact of the coronavirus on end of year reporting, mindful of IAS 10.