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John Selwood audit clinic
John tackles some topical questions from auditors on accounting for COVID-19-related government aid.
The COVID-19 pandemic has prompted governments across the world to introduce various business aid initiatives. In the UK, these include the Coronavirus Job Retention Scheme (CJRS), the Coronavirus Business Interruption Loan Scheme (CBILS), and rent and rate holidays, to name but a few.
These initiatives prompt all sorts of questions for preparers and auditors, not least around financial reporting treatments. During the continuing professional development courses I have recently presented (all online now, of course), auditors have asked lots of questions on accounting for government aid. So, as a departure from the norm, for this Audit clinic, I’m going to look at some of the financial reporting treatments for government aid schemes and related issues.