Guide Questions:

1. Give at least ten (10) important information which you believe are very crucial points
shared on this webinar.
The webinar centers on topics about International Financial Reporting Amidst the COVID-19
Pandemic and the ten important information in which I believe have a very crucial points are (1)
the discussion on the current world economic outlook growth projections (ASEAN economy) in
which the world output have a negative real GDP as well as the GDP in the advanced economies
for the COVID-19 pandemic have affected the whole wide world; (2) the discussion on the
Impact of the pandemic to our country with the labour market heavily affected for the country
heavily rely on the tourism sector for which with the situation of the COVID-19 pandemic, some
travel bans have been imposed which resulted to a double negative number for the year 2020; (3)
the discussion on the main challenges for businesses during COVID-19 pandemic which tackles
on the financial aspect of the businesses including cashflow, liquidity and delays in receivables:
(4) the discussion on the impact of the pandemic to the cash holdings of companies which due to
this situation, the companies cash holdings have been increased; (5) the discussion on the impact
of the pandemic to the inventories of the businesses which tackles on the closure of some
factories and the operating capacity of some to be lower than before; (6) the discussion on the
impact of the pandemic to the Property, Plant and Equipment (PPE) and their depreciation, in
what should be the proper action to be done with the new changes in their operations; (7) the
webinar also discuss on the pandemic impact on the impairment of assets not just on PPE but
also on the intangible ones; (8) the webinar also discuss the application of the IFRS 9 Financial
Instruments in this pandemic especially for allowances; (9) the discussion on the pandemic
impact to the application of IFRS 16 Leases, what is the accounting treatment for this matter and
how it should be recognized; and lastly (10) the discussion on the disclosures of the pandemic
impact in various industries especially to some ASEAN companies. All of these topics discussed
in the webinar for me have a material points for with our new situation due to this COVID-19
pandemic, financial reporting have a very crucial role in the communication between the
companies and their stakeholders, so a quick response to the changes in the accounting world as
well as in the business world is viable to the sustainability of businesses in this turbulent period.
2.  What is the relevance of this seminar to you as a future accountant?  
- As a future accountant, having participated in this webinar is really a big help to our future
career someday for the webinar tackles the most unprecedented issue, the COVID-19 pandemic
and how it should be treated with regards to the financial reporting of many businesses
worldwide. It is very much essential for us to be aware of the changes this pandemic had brought
into for it will be a big factor in practicing our desired career paths. As a future accountants, we
must be able to have knowledge on the environment in which we would be part of and having the
webinar that tackles the changes on some accounting treatments with regards to this new
environment we are in due to the pandemic, it will serve as our guide through our studies and it
is much beneficial for us that we already have a knowledge and overview of some changes which
we would encounter in the near future, for we all know that it is not just a span of one year, two
years or more for the pandemic to vanish completely, so when the time comes when we’re in the
business industry doing our jobs, we will not be lost and would do our jobs efficiently and
effectively.
 3. Give at least five (5) changes on specific accounts.  Compare how they are treated in
financial reporting before and during the pandemic.
(1) One of the changes in the financial reporting during this pandemic is the valuation of
Inventories (IAS 2), in which inventories are measured at the lower of their cost and net
realizable value (NRV) but during this pandemic, NRV calculation will likely require more
detailed methods or assumptions, for the market demand is decreasing thus inventories such as
raw materials will also pile up and companies may need to write-down stock due to less sales.
Inventory impairment will also be increase for goods will easily become obsolete thus it should
be reflected in the periods in which they occur, with subsequent recoveries recognized as gains in
the future periods.
(2) The PPE which is initially measured at its cost, and is subsequently measured either using a
cost or revaluation model, and is depreciated so that its depreciable amount is allocated on a
systematic basis over its useful life is also affected by this pandemic, hence even if the assets are
not in used, depreciation cannot be stopped and entities could prolong the economic life of assets
and would minimize their depreciation expense. However, entities should review annually the
asset’s economic life and residual value. The borrowing cost should also be temporarily
expensed, not capitalized to the PPE if the usage had stopped. And for the case of property and
land, the pandemic had caused the decline on the property market which may trigger the
impairment test.
(3) The IFRS 16 Leases is also affected for before IFRS 16 requires a lessee to recognize assets
and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of
low value. A lessee is required to recognize a right-of-use asset representing its right to use the
underlying leased asset and a lease liability representing its obligation to make lease payments.
During the pandemic, the International Accounting Standards Board (IASB) has published
'Covid-19-Related Rent Concessions (Amendment to IFRS 16)' amending the standard to
provide lessees with an exemption from assessing whether a COVID-19-related rent concession
is a lease modification. The lessee was given a lease payment holiday and may treat it as a
change in variable payment and there is no need for the recalculation of the Right of Use Asset
and Lease Liability.

(4) The Impairment of Assets seeks to ensures that a company’s assets are not carried at more
than their recoverable amount (the higher of fair value less costs of disposal and value in use)
and requires entities to conduct impairment tests when there is an indication of impairment of an
asset at the reporting date. The scope of assets subject to the requirements in IAS 36 is broad.
It includes property, plant and equipment (carried at cost or revalued amount), intangible assets
(carried at cost or revalued amount), goodwill, right-of-use assets (if carried at cost), investment
property (if carried at cost), biological assets (if carried at cost) and investments in associates and
joint ventures accounted for using the equity method. Entities need to assess whether the impact
of the COVID-19 pandemic has potentially led to an asset impairment for the economic effects
are likely to trigger an impairment test for long-lived assets and other asset groups affecting
directly or indirectly the future cash flows and earnings of the business. Asset impairment may
also reduce the amount of deferred tax liabilities and create additional deductibles for indicators
of impairment include significant changes with an adverse effect on the company that have taken
place during the reporting period.

(5) The application of IFRS 9 which guides the recognition and measurement, impairment,
derecognition and general hedge accounting play part as a management strategy for the COVID-
19 pandemic situation for under the IFRS 9, impairment allowances for loans booked at
amortized cost are based on Expected Credit Losses (ECL) and must take into account forecasted
economic conditions.

4. Based on your existing knowledge of Accounting, its evolution and current trends in the
economy, what do you think are possible future changes in Financial Reporting.

Based on my existing knowledge of accounting, its evolution and current trends in the economy,
I think the possible future changes in Financial Reporting are financial reporting will be more
digitalized with the help of evolving digital and smart technology. Accountants will use
increasingly sophisticated and smart technologies to enhance their traditional ways of working
that will improve collaboration, disclosure, engagement with stakeholders and broader
communities and will help accumulate more data that is essential for financial reporting.
Technological advancements are changing business and financial reporting, and consequently
how effective these approaches take benefits of technology and data in doing fieldworks
effectively and efficiently and the fast pace of change in technology will also affects how
investors and other users access and process financial information. Confidence in financial
reporting is essential to a healthy economy, however, financial reporting is a means to an end and
not an end of itself. Its purpose is to measure, reflect, interpret, or otherwise disclose business
events that have taken place in a decision-useful manner necessary for the well-being of the
business entity.  High-quality, general-purpose financial statements are designed to help
investors make well-informed investment decisions and with the help of the new innovation and
technological advancements readily available for usage, the next generation of the financial
reporting will be achievable and successful.