You are working as an accountant in an accounting firm in Hobart. One of your clients, an engineering firm in Hobart that deals with heavy machinery, has contacted your accounting firm to know whether COVID-19 may impact recoverable amounts of assets owned by the firm. Your client has recently read an article discussing how COVID-19 can impair firm assets. Your boss knows that you have recently completed accounting unit BFA201 from the University of Tasmania. In your last conversation, you informed your boss that in the BFA201, you had completed a group assignment on the impacts of COVID-19 on assets and financial reporting.

Your boss thinks you are the best person to have a conversation with the client regarding climate change and asset impairment.

Required

Write in your own words to explain to your client how COVID-19 can impact asset impairment. Provide some examples so that your client understands the impact of COVID-19 on asset impairment.

As a guide, write about half a page to a page.