Corona

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Impairment test according to IFRS in times of the Corona Pandemic

"Due to the currently unforeseeable global consequences of the coronavirus pandemic, these estimates and judgments are subject to increased uncertainty. Future changes in the expected cash flows and discount rates may lead to (further) impairment losses or reversals of impairment losses in the future.” (adidas Group, report on the first half of 2020) Since the outbreak of COVID-19 at national and international level, the economic situation for companies has become increasingly difficult. The majority of the companies has to deal with various shortfalls, such as cancelled orders, delivery ...

Duties of the managing directors in times of the COVID-19-pandemic

The COVID-19-pandemic and the government measures taken in this context at federal and state level (such as the closure of facilities and retail stores, the issuing of quarantine orders and exit restrictions) have led to a considerable slump in the German economy, and the financial and capital markets are under considerable pressure. Companies in many industries are directly affected by these negative economic effects in the form of interrupted supply chains, sometimes significant sales losses and the need for protective measures for employees. It is not uncommon for companies to face a con ...

Effects of COVID-19 on lease arrangements according to IFRS 16

As a reaction to COVID-19 in Germany, various civil law provisions on the exclusion of termination in tenancy law, on deferral of payment in consumer loan agreements and contracts that secure the further going concern came into force on 1 April 2020. As a result, rental contracts, in particular, may not be terminated due to rent debts in the period from April to the end of June 2020, provided that the incurrence of the rent debts is attributable to COVID-19, such as the closure of retail stores for a certain period of time. On 10 April 2020, the IASB published a statement which addresses th ...