The APOB announced the postponement of the publication of consolidated financial statements and auditor’s report
Financial statements for 2019 and consolidated financial statements for 2019, together with the auditor’s report, can be published during the quarantine period or within 90 calendar days from the day following the day of completion of the quarantine, but no later than December 31, 2020. Such a change is envisaged by the Law adopted by the Verkhovna Rada “On Amendments to Certain Legislative Acts to Provide Additional Social and Economic Guarantees in Connection with Spread of Coronavirus Disease (COVID-2019)”.
Now the issuers of securities can extend the terms of disclosure of their annual information. The relevant amendments were introduced to the laws of Ukraine “On Securities and Stock Market”, “On Joint Stock Companies” and “On Limited Liability Companies”. Thus, annual information shall be disclosed by securities issuers until April 30, 2020, and after this date is disclosed within 5 working days after the general meeting of shareholders (participants). In turn, the general meeting can be held no later than 3 months after completion of quarantine.
With regard to the audit of financial statements of public interest entities in the conditions of the COVID-19 pandemic, here the Audit Public Oversight Board emphasizes the importance of the following procedures during the audit:
- assessment of risks associated with the COVID-19 pandemic and the establishment of quarantine and restrictive measures, as well as the need to review previously assessed risks;
- definition of circumstances caused by the influence of the pandemic and the establishment of quarantine and restrictive measures as a key audit matter;
- the auditor’s ability to obtain reasonable audit evidence in sufficient volume before submitting an audit report, due to restrictions on movement, actual access to the location of the enterprise, as well as limited opportunities for communication with the client’s personnel for health reasons;
- Auditor’s special attention to significant judgments of management concerning accounting estimates, in particular, the impact of the COVID-19 pandemic and the introduction of quarantine and restrictive measures on uncertainty assessment and disclosure of information related to relevant accounting estimates in financial statements;
- auditors assess the disclosure of information on the impact of the COVID-19 pandemic and the establishment of quarantine and restrictive measures on its activities, financial position and future economic indicators;
- obtain sufficient appropriate audit evidence about the appropriateness of management’s use of the going concern assumption in the preparation of financial statements, taking into account the growing uncertainty associated with the change in the economic situation and pessimistic forecasts of the global and national economy.
- review of other information that is not financial statements (management report, annual information of the issuer of securities, etc.) for the disclosure of the matter of the influence of the COVID-19 pandemic and the introduction of quarantine and restrictive measures on the activities of the business entity.