Pandemic (Covid-19) Effect On Financial Statements: The Role Of Government And Organizations For Future Prevention

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.