Exemplifying the Effect of Big Bath Accounting in the Pandemic

Currently, the economic environment is significantly affected by COVID-19 pandemic. The effects are visible in area of accounting and financial reporting policies practice as well. aim this article to show how estimates can be current macroeconomic context crisis. discussion focuses especially on accruals reported cover risk uncollectable receivables, addressed IFRS 9 Financial Instruments. example illustrates specific risks generated higher uncertainty caused crisis customers’ issues with liquidity these times. overall conclusion that statements related pandemic period have carefully reviewed they subject measurement could discretionary professional judgment or lack suficient guidelines provided enforcement authorities.