Zakirova D, Yerdavletova F, Berdimurat N, Nurmagambetova A, Assanova A Asset impairment: the quality of disclosures in financial reporting amidst the pandemic. Sci Herald Uzhhorod Univ Ser Phys. 2024;(56):1347-1353. DOI: 10.54919/physics/56.2024.134wf7
Asset impairment: the quality of disclosures in financial reporting amidst the pandemic
Dilnara Zakirova, Farida Yerdavletova, Nazimgul Berdimurat, Azhar Nurmagambetova, Altynay Assanova
https://doi.org/10.54919/physics/56.2024.134wf7
Abstract
Relevance. The deterioration of economic conditions both in individual countries and worldwide, due to the spread of coronavirus infection and the imposition of strict quarantine restrictions resulted in notable changes in the financial and business sectors. This makes it relevant to investigate this issue.
Purpose. The main purposes of the study are to examine the issue of changes in the quality of information to be disclosed in connection with financial reporting, specifically the impact of the global pandemic on this procedure. Additionally, the study aims to determine the extent to which such dynamics have a positive or negative effect on the implementation of financial reporting.
Methodology. Various methodological approaches, which have both theoretical and more practical aspects, such as the theoretical and methodological approach, analysis, synthesis, comparative analysis, and the analysis of scientific literature were used in the study, which helped to investigate the above-mentioned issue and achieve the research objectives.
Results. In the process of examining the aspect, the following results were identified, the theoretical background to the issue was reviewed, in particular the concepts, the main components of the asset impairment phenomenon, and the financial reporting and disclosure procedures were highlighted, the main features and changes in the industry caused by pandemic were identified.
Conclusions. Alternative approaches to financial disclosure have been formulated which may help to prevent the occurrence of negative consequences for legal persons due to neglecting such information, or even withholding such information.
Keywords: asset carrying amount; asset recoverable amount; asset sensitivity analysis; operational continuity; coronavirus infection; reduction in asset value
Suggested citation
References
- Abdrakhmanova AU, Korabayev BS, Mishchenko VV. Accounting for impairment of assets inaccordance with International financial reporting standards. Econ Prof Busin. 2018;3:5-10.
- Golikova OV, Adusheva AYu, Muravitskaya NK. Problems of accounting and audit of fixed assets and options for their solving in accordance with international standards. Bull Tatish Volzh Univ. 2017;4:1-9.
- Druzhilovskaya ES. Current problems of valuation of assets in russian accounting. Bull N.I. Lobach Nizh Novg Univ Ser Soc Sci. 2016;5(3):62-71.
- International Financial Reporting Standard (IAS) 36 “Impairment of Assets”; 2021. https://cutt.ly/aPbgrG5.
- Insights into IAS 36; 2021. https://cutt.ly/wPbggO8.
- IOSCO Statement on Importance of Disclosure about COVID-19; 2020. https://www.iosco.org/library/pubdocs/pdf/IOSCOPD655.pdf.
- Lisicki B. Impairment of assets and market reaction during COVID-19 pandemic on the example of WSE. Risk. 2021;9:183.
- Bashkatov VV, Bykova Yu, Glotova MA. The essence of financial and non-financial reporting. Int J Natur Human Res. 2021;4:287-291.
- Bunina AYu, Pavlyuchenko TN. Changes in international financial reporting standards. Sci Method Electr J “Conc”. 2020;5:1-8.
- Kustono AS, Agustini AT, Dermawan SA. Beware of the existence of a big bath with asset impairment after pandemic Covid-19! Indon Account. Rev. 2021;1:21-31.
- Rura OV. Methodological problems accounting for impairment of property, plant and equipment. Mech Econ Regul. 2013;2:79-87.
- Sapozhnikova NG. Impairment of assets and risks of corporations. Bull Voron St Univ. 2020;2:105-115.
- Sapozhnikova NG. Reflection of impairment of assets in the financial statements of companies. Territ Sci. 2006;1:48-55.
- Ozili PK. Accounting and financial reporting during a pandemic. In: Özen E, Grima S, Gonzi RD. (Eds.) New Challenges for Future Sustainability and Wellbeing (Emerald Studies in Finance, Insurance, and Risk Management) (pp. 87-93). Leeds: Emerald Publishing Limited; 2020.
- Surma IV. Corporate governance: Information disclosure and transparency; 2021. https://cutt.ly/3PbjSUy.
- Vakhrushina MA. Standardization of financial statements of Russian organizations and the quality of disclosed information: current problems. Int Account. 2018;3:227-280.
- Feofanova I, Antonova O. Problems of accounting fixed assets at the enterprise. Young Sci. 2020;11:205-208.
- Adamenko AA, Khorolskaya TE, Moskalenko TA. Features of reflection in the reporting of events coming after the reporting date according to IFRS. Int J Natur Human Res. 2019;3:194-198.
- Koryagin MV. The quality of financial statements as information product of the accounting system. Int Account. 2016;2:34-48.
- Akani FN. Assets impairment testing: An analysis of IAS 36. Afric Res Rev. 2016;1:178-192.
