Pandemic (Covid-19) Effect on Financial Statements: The Role of Government and Organizations for Future Prevention

Abstract

COVID-19 pandemic period impedes business operations and world economic growth. This type of pandemic may happen again in the future. Hence, the objectives of the study are to find out the pandemic effect on items in financial statements; to predict the future effect on items in the financial statements, and to find out the role of government and organizations for future prevention of the adverse effects on financial statements due to the pandemic. The analysis is based on a large number of publicly available sources, including research papers, governmental documents, and reports. The study has taken 8 ratios compared with 80 listed companies around the globe. During the pandemic period the magnitude of adverse effect on business operations depends upon the decision and actions of external bodies (WHO, governments) and internal ones (organizations) parties. The findings revealed that the role of government and organizations for future prevention of ‘Pandemic Effect on Financial Statements’ is vital to defend against future pandemic situations. This study has added a new discussion to the body of knowledge, i.e. examining pandemic (COVID-19) effect on business operational activities and its financial statements; hence, an approach that is not widely discussed in the previous studies.

Management of risk of corporate distress and failure before, during and after the COVID-19 pandemic via corporate governance performance

“…This study is unique because there are no known prior studies that have combined corporate governance performance before, during and after the pandemic, as well as the management of risks of corporate distress and failure in Africa based on the extent of our research and as of the time when this work is being carried out. Studies in this area have focused on the impact of COVID-19 and firm performance and financial statements [39][40][41]. Generally, prior studies have mainly focused on the COVID-19 pandemic and corporate governance [18,28], COVID-19 risk and corporate distress and failure [3,8,14,15,35], while studies on corporate governance and corporate distress and failure studies are limited in the world literature [4].…”

The Need for Harmonizing Value Added Tax Legislation in Gulf Cooperation Council

“…Narayanan, (2020) focused on the VAT regimes used by various countries. It focuses on the origins, expansion, and evolution of VAT, as well as the numerous tax model frameworks used in roughly 147 nations throughout the world and the various VAT actions taken by governments during the Covid-19 epidemic (Thottoli, 2021). Moreover, Grigore and Gurău (2012) compiled the information on the major aspects of VAT in EU member states and emphasized the important variations among them.…”