IFRS Alert: Accounting implications of the conflict in Ukraine

In light of the latest conflict in Ukraine, including the introduction of wide-ranging sanctions against certain Russian companies and individuals, entities need to carefully consider the accounting implications of this situation.

This IFRS Alert considers the financial reporting impact of the conflict on 31 December 2021 and subsequent year ends as well as assessing the importance of assessing going concern.

The issue

As the conflict in the Ukraine progresses, it is important that businesses consider the accounting implications resulting from the impact it is having on their operations and activities. The most immediate and visible accounting implications might be direct implications which result from investments in Ukraine and/or Russia (the exposure to the conflict is directly linked to the net investment the entities might have in those countries), and to the existence of a volume of businesses with and within those two areas. However, there might also be other significant indirect implications associated with more global economic consequences that result from the conflict on other areas, for example the possibility of disruptions to commodity flows that will impact the price of those commodities (eg gas, petrol, cereals, iron and steel) which may affect the overall value chain of entities that are even not located in those countries

Download the IFRS Alert: Accounting implications of the conflict in Ukraine

IFRS Alert Accounting implications of the conflict in Ukraine

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