Impairment Testing in COVID-19 Environment

As period of this pandemic has coincided with theFinancial Year closing of most of the companies inIndia, one of the key aspects to be considered by themanagement, CFOs, Financial Controller as well asthe auditors is the potential impact of the pandemicon the Financial Statements. In current regulatoryenvironment both the Management as well as theauditors are critically reviewed for appropriatedocumentation and audit procedures. Hence, one ofthe main questions required to be answered iswhether there is any impairment in the value of theassets or investments of the company (pure financialinvestments as well as Subsidiaries/ Associates).Several aspects need to be considered to arrive at ‘isthere a triggering event’?