The strong impacts of COVID-19 pandemic on business models require a rethinking of reporting practices. As the impact of COVID-19 continues to unfold around the globe, the COVID-19 pandemic, and the conditions resulting from the measures taken to contain it have also created significant challenges to preparers and auditors of financial statements.

For example, it is argued that trust has become even more significant, with investors, regulators and other parties wanting firms to be more transparent around the impacts of the crisis on their operations beyond their mandatory reporting obligations. Disclosure of conventional financial information alone does not allow accounting information users to adequately grasp all the impacts of COVID-19 on organizations and on corporate management. In light of this catastrophic event, integrated reporting (IR) developed by the International Integrated Reporting Council (IIRC) has been identified as a key tool to help firms address future risks they face such as those posed by the Covid-19 pandemic.

a. Based on this statement, critically evaluate the link between integrated reporting and any one of the accounting theories.

b. Assess how this pandemic-related information is to be included in each of the Content Elements set out in the IR Framework.

In addition, the pandemic has left millions of people jobless and many workers have lost gainful employment and their source of income. This once again, this will have an effect on how firms need to provide accounting reports on employment.

c. Assess at least three (3) key financial reporting considerations arising from Covid-19 and its associated events faced by firms in relation to MFRS 119 Employee Benefits