The possibility of suspending amortizations
The possibility of suspending amortizations in the 2020 balance sheets in order to reduce any operating losses accrued as a result of Coronavirus has been confirmed by the conversion law of the “Decreto Agosto”.
The companies that shall establish the financial statement without the application of international accounting principles, cannot account for up to 100% of the amortization of the intangible and material assets.
The amortization not applied in 2020 will extend the asset’s amortization plan by one year and the reasons why the amortization isn’t accounting for must be represented in the notes to the financial statement.