What the document covers
The May 2020 guidance responds to business disruption, volatility and uncertainty. Its purpose is to help directors assess financial reporting effects of those conditions.
Specific requirements and implications
If impairment headroom remains unchanged despite deteriorating trading, directors should ask whether forecasts and discount rates reflect the new risks. Lower policy rates do not necessarily mean lower credit-risk premiums. Probability-weighted scenarios can help capture a range of outcomes. Where property inspections were restricted, the information supplied to valuers and qualifications in their reports deserved scrutiny. Subsequent valuation movements also need analysis as adjusting events or relevant disclosures.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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