Annual Enterprise Survey 2020

Impact of COVID-19 The COVID-19 pandemic had significant impact on NZ business activity, particularly from 24th March until 14th May 2020, when COVID-19 alert levels 3 and 4 were in place. Auckland was under alert level 3 again on the 12th August until 23rd September. As the 2020 Annual Enterprise Survey results cover enterprises with balance dates between 1 October 2019 to 30 September 2020, the impact of COVID-19 was varied. 'Government funding, grants and subsidies' include government funded COVID-19 wage subsidies in the 2020 Annual Enterprise Survey. Wage subsidies passed on to employees are captured under salaries and wages paid. Significantly more COVID-19 wage subsidies are expected in the 2021 Annual Enterprise Survey results. New accounting standard for leases On 1 January 2019 most businesses changed the way they account for leased (‘right-of-use’) assets under the International Financial Reporting Standard 16 (IFRS 16). See NZ IFRS 16 for further information. The change to the accounting of leases caused: assets and liabilities to increase depreciation and interest expenses to increase other operating expenses to decrease. en-NZ