The COVID-19 pandemic has very adversely affected the business worldwide, even India is not an exception.It will be having some impact on financial statements of companies.Let us explore this…..
Coronavirus (Covid-19) pandemic has shattered the economy of several nations.
The companies will not be able to maintain a balance between debit and credit. Many will face a severe financial crisis. They will be in a position to curtail their development activities.
It will have negative effects so great that growth will not be negative in most of the global economies, especially the large ones
Certainly it will affect the majorly developed countries like america, Russia etc. As per new news and forecast China and India will not go under recession.
There are plenty of negative effects of COVID 19 on financial statements of families and business categories. Overseas Contract Workers were stranded due to lockdown. Resort owners were forced to close down due to the absence of tourists.
Short answer: We're all screwed, to varying degrees.
Longer answer: The $trillions in lost productivity will never be recovered, many businesses and many business-models and cottage industries will remain consigned to the dustbin of pandemic history. The lag time from lost production in most industries, from food to precision-manufactured hypersonic glider ICBMs, and everything in between, is only beginning to swell into the massive crest of the shortage wave that is about to hit us all like a world-wide tsunami. Every day that our economic engines remain idle will be felt with an incommensurately larger whiplash on our collective future selves.
The only way to attenuate our near-future economic woes, which are exponentially more insufferable the further down you happen to be in the worldwide economic strata, would be a mutual agreement that most of us have to work harder, faster, and longer, as soon as possible. The reality will, unfortunately, be a slow-rolling of sub-optimal and partial workforce participation. If you think of it in simple kinematic physics, the demand and necessity of goods and services in our intricately hyper-interconnected modern world has decreased slightly while the supply has fallen exponentially. Actions and inaction have equal and opposite results; the penalty for inaction is deprivation. The terrifying calculation is how much deprivation will be foisted upon how many people whose lives are completely dependent upon the imports that were never received, especially for those who were already barely hanging off the cliff-edge. Who will be there to save those people if they were depending on us?
https://cfo.economictimes.indiatimes.com/amp/news/covid-19-and-its-impact-on-financial-statements/74787373
https://www.ey.com/en_gl/assurance/five-financial-reporting-issues-to-consider-as-a-consequence-of-covid-19
https://www.marcumllp.com/insights/impact-of-the-coronavirus-covid-19-pandemic-on-financial-statement-disclosures
https://www.pwc.nl/en/insights-and-publications/services-and-industries/audit-and-assurance/the-impact-of-covid-19-on-the-2019-financial-statement-and-the-directors-report.html
https://www.forbes.com/sites/jimdeloach/2020/03/23/how-is-covid-19-affecting-your-financial-statements/amp/
https://asic.gov.au/regulatory-resources/financial-reporting-and-audit/covid-19-implications-for-financial-reporting-and-audit-frequently-asked-questions-faqs/
Sanjeev Bansal The Covid-19 pandemic will become more dangerous to the world, the infection rates will increase, and consequently the death rates will increase, and the global economy will suffer greatly, as it is possible for many countries to face a major financial crisis.
https://www.pwc.com/ng/en/assets/pdf/covid19-key-financial-reporting%20implication-nigeria.pdf