Question

What is the impact of COVID-19 on society? Also, what is it's impact on the economy in regards to accounting?

Answer 1

The impact of COVID-19 on society

The COVID-19 pandemic is far more than a health crisis: it is affecting societies and econ­omies at their core. While the impact of the pandemic will vary from country to country, it will most likely increase poverty and inequalities at a global scale.

Assessing the impacts of the COVID-19 crisis on societies, economies and vulnerable groups is fundamental to inform and tailor the responses of governments and partners to recover from the crisis and ensure that no one is left behind in this effort.

Without urgent socio-eco­nomic responses, global suffering will escalate, jeopardizing lives and livelihoods for years to come. Immediate development responses in this crisis must be undertaken with an eye to the future. Development trajectories in the long-term will be affected by the choices coun­tries make now and the support they receive.

The United Nations has mobilized the full capacity of the UN system through its 131 country teams serving 162 countries and territories, to support national authorities in developing public health preparedness and response plans to the COVID-19 crisis.

Over the next 12 to 18 months, the socio-economic response will be one of one of three critical components of the UN’s COVID-19 response, alongside the health response, led by WHO, and the Global Humanitarian Response Plan.

As the technical lead for the socio-economic response, UNDP and its country offices worldwide are working under the leadership of the UN Resident Coordinators, and in close collaboration with specialized UN agencies, UN Regional Economic Commissions and IFIs, to assess the socio-economic impacts of the COVID-19 pandemic on economies and communities. The assessment reports available on this site contain the preliminary findings of regional and country analyses.

It's impact on the economy in regards to accounting: -

In Accounting companies provide Profit before Tax amount and many other. Now< Government has mandated to provide Profit before Covid figures and Profit after Covid figures so that stateholders can compare profit conveniently.

Many other disclosures are being announced by government relating to covid 19. Major provisions are required to be made in the books with respect to Covid 19.

Checking of Going Concern of the companies is the need of the hour now.

Industires like Aviation, Hotel, Tourism has been drastically hit. Many stimulus has been announced and many on the way. Accounting of this relief packages will affect the profit of companies and which in turn affectv GDP of the country.