Unpacking the IFRS implications of COVID-19 for travel and leisure companies listed on the JSE

Abstract

Purpose – The primary purpose of this article is to study the International Financial Reporting Standards (IFRS) implications of COVID-19 for selected travel and leisure companies listed on the Johannesburg Stock Exchange (JSE). This analysis is deemed vital to the users of financial statements who need to make informed decisions and require all the necessary information about how COVID-19 has affected them. Design/methodology/approach – Content analysis was used to analyse the financial statements of ten travel and leisure companies listed on the JSE. This analysis indicated what additional disclosures these companies have in the light of COVID-19. Findings – Even though there is no specific IFRS standard providing guides on the impact of COVID-19, the findings reveal that the companies took utmost care in preparing the year-end financial statements. Companies cautiously considered the impact of the coronavirus on their financial reports and going concern, providing the users of these financial statements with transparent financial information. Originality/value – A new economic crisis, different from any other economic crisis, emerged as a result of COVID-19. Therefore, the IFRS implications of COVID-19 is still unclear. This study shows what these implications are and how companies disclosed the essential information needed for transparency. Paper type Research paper