Pandemic relief has come from all quarters when it comes to regulatory compliance and includes temporary relief from a range of provisions of the Corporations Act as well the provision of guidance for those preparing and auditing financial statements in uncertain times.

The Federal Government’s relief in the area of insolvent trading has been welcomed but the notion of it being in place solely for six months is incredibly flawed.

It is so flawed that the government needs to rethink the approach for the sake of the smaller businesses that will find it challenging to restart once business activity that has been frozen due to restrictions gradually begins to reanimate.

There is relief from the provisions of the law that deal with personal liability for insolvent trading for directors. This is a useful relief because it removes at least for a period of time the threat that a director could be done over for insolvent trading. It is insufficient in terms of length of time because six months will not be enough for some businesses to get back on track.

Consider the possibility that some businesses rely on supply chains that may still be dribbling rather than flowing much needed product for industries and retailers.

There is a need to bear this in mind while the six-month period is on because manufacturers or retail outlets and even eateries may rely on some goods that could be in short supply.

The six month time limit on the relief from those provisions may force some of these directors to make a decision about the future of their business that they otherwise might not.

Extending this relief to the end of the 2020 calendar year at the minimum ought to be considered by the Federal Government so that the businesses that are also bank clients are given enough breathing space and wriggle room without fearing that a creditor or supplier deciding to go to the mattresses and engaging in lawfare.

There is something else of interest that has emerged over the past three to four months.

Guidance (from accounting and auditing standards setters, accounting firms and independent firms specialising in accounting advice) on reporting issues arising from the pandemic has sprung up everywhere like a batch of toadstools at the edge of a forest.

The guidance is all over the place, which in the first instance means there is no excuse for people reporting to get things wrong.

Guidance from Australia’s pre-eminent bodies in the area of accounting and audit standard setting, the Australian Accounting Standards Board and the Auditing and Assurance Standards Board, has been framed in a way so that readers get to have a mud map of relevant information as they consider the business issues that are thrown up by the pandemic.

There is one publication that looks at the general accounting and auditing issues people might need to reflect on more carefully in the present environment. Another publication, which was flagged in Banking Day recently, concerns itself with the notion of going concern and what directors and auditors must consider for