The National Accounting Council published the 14th notice on the accounting implications of the Covid 19 pandemic, including valuation and accounting procedures for charges and losses related to the coronavirus crisis, as well as revisions to depreciation plans for tangible fixed assets.
While the coronavirus pandemic has negatively impacted several sectors and continues to do so even in 2021 by having direct repercussions on their turnover, the Economic Watch Committee seized the National Accounting Council (CNC) on 4 February 2021, to extend the application of the provisions of CNC opinion n ° 13 explaining the accounting implications of the Covid-19 pandemic to fiscal year 2021 and to all subsequent fiscal years that may be affected by the state health emergency decreed by the Government.
This approach is explained by the negative effects noted on the equity of companies according to their summary statements, indicates a press release from the Ministry of the Economy, Finance and the Reform of the Administration and the National Accounting Council ( CNC).
They may not reflect the true picture of the financial and asset position and results of these companies in the event that an appropriate accounting framework is not put in place making it possible to adapt the accounting treatment methods of certain transactions to the current context. which is of an exceptional and unprecedented nature, ”adds the document.
Thus, the press release announced the CNC’s opinion n ° 14, explaining that the normal procedure relating to the adoption of the CNC’s opinions provided for by decree n ° 2.88.19 instituting ”the Council has been derogated from. the extension of the period of validity of the state of health emergency throughout the national territory to deal with the spread of Covid-19.
The opinion which is applicable to the fiscal years open in 2020 and 2021 and to all subsequent fiscal years that may be affected by the state of health emergency due to the coronavirus pandemic, the CNC, relates to the assessment methods and accounting for charges and losses specifically linked to the pandemic, in this case, the contributions paid by entities aimed at combating the effects of the Covid-19 pandemic as well as the share of fixed charges linked to the sub-activity compared to the normal production or operating capacity of the affected entities.
And, on the revision of the depreciation plans for tangible fixed assets when the conditions and / or the periods of use of certain fixed assets are notably impacted by the circumstances linked to this pandemic, adds the press release.