Question

Identify some of the immediate threats and opportunities that today's businesses are facing or could face. Support responses with financial references. How do you forecast the financial reporting requirements for companies shifting in 10 to 20 plus years. Do you think they will be more relaxed or stringent? Are countries across the globe going to standardize their filings into a single system?

Answer 1

Some of the immediate threat and opportunity that today's businesses are facing are as follows-

Opportunities-

A. There has been a emergence of fintech and those companies who are quickly adapting to it are gaining a competitive edge.

B. there has been a revolutionary digitalization in online meeting and we can see at the time of the covid-19 outbreak there has been shifted to online meetings.

C. there has been switch to digital workforce rather than theoretical workforce and those companies who are switching to it will be gaining a competitive advantage and there has been lower cost in digitalization also.

Threats which are immediate and contemporary in nature-

A. Huge disruption by technology through cryptocurrencies by Bitcoins and other coins in normal banking business as they are non regulatory.

B. Emergence of new age technology are disrupting the the mature businesses like Tesla is disrupted General motors.

C. Emergence of multinational corporations and multinational raising of funds and also provided an edge to the multinational companies rather than domestic companies.

Yes, I forecast that the financial reporting requirement for the companies who are shifting to these new technologies should be different than the current accounting because the financial reporting will be currently different and dynamic because they should be adapting to the changes and I think they will be more relaxed and business oriented.

Yes, the country's all across the globe will be trying to internationalise the filings into a single system as there will be better access to various companies and there will be a centralised regulation also.