Category Archives: Social

SPANISH FLU Vs COVID-19

spanish flu vs covid-19

1920 Vs 2020


SPANISH FLU
COVID-19
Period
January 1918 to December 1920
November 2019 to ???
World GDP
USD-3,000 billion in 1918
USD-88,000 billion (Approximately) in 2019
US Stock Market
Dow Jones Index 82.20 (1918) and 71.95 (1920)
Dow Jones Index 28538 (2019)
Largest Economy
British Empire.
USA
Outbreak
1918 during First World War period.
2019 during the trade war between China and USA.
Origin
Unsure of its source(First case reported in US military camp).
From China
Economic Effect
World economy lost approximately USD-800 million.Almost 25% of shrinkage in world GDP.
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World Population
1.8 Billion in 1918.
7.8 Billion 2019
Infected
500 Million
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Death
50 Million (Approximately)
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Affected Countries
Approximately 100.
Approximately 200
Pandemic Control Authority
There was no such effective authority during the time.
WHO
How Pandemic Ended?
No medicines. Infected either died or developed immunity.
???????
Medical Field
Not developed.

Era Before Antibiotics, penicillin or vaccines

Last century witnessed high development of medical science and world’s readiness to face any challenge so that mortality rate will be surely low.


The Real Economic Impact Can’t be Calculated Until This Lethal Pandemic Ends. Unemployment And Deflation Will Have Social, Economic and Political Uncertainty and Resultant Cascading Crisis.

THIS TOO SHALL PASS..

spanish flu vs covid 19 epidemic newspapercuttings

POST COVID-19

Post covid-19 world kudos p

  • Corporate world will change for ever.
  • The effect of damage in the financials will last for longer period even after
    normalization.
  • Businesses without big financial muscles will collapse if pandemic continues even for a shorter period.
  • Any failure or bankruptcy of any giant businesses will have far fetched consequences in SME economy.
  • The austerity measures for economic revival by governments should reach
    at every level of economy in order to check deflation.
  • Flexibility in payment terms by financial institutions, support by Govt. Agencies will be a relief for ailing companies due to lockdown.
  • Work at home so far was only a western work culture. But it will become popular in many other countries too.
  • There will be surge in outsourcing services and IT services businesses.
  • IT business will be major beneficiaries as online business, on line payment
    and on line education will be the future everywhere in the world.
  • Major investments expected in health care especially in primary health centers.
  • Importance will be given for Medical research institutions.
  • There will be rethinking on present strategy of concentrating retail businesses in large malls and hence It may move back to decentralized market as it was earlier.

  • Accounting Wise, the market corrections will happen and therefore assets will get accounted at their fair value either through impairment or write off because of obsolescence.
  • Intangible assets like goodwill have major impact during market corrections.
  • Going concern depends on lots of factors. The main factor is the investors’ ability to contribute to the business.

Post Covid Social Life Too Will Change.

The world will not be same again in post covid era.
But BIG QUESTION Everyone Wonders
 
“WHEN THIS DEADLY COVID VIRUS’ GLOBAL MARCH WILL END ?”

 

COVID-19 EFFECT ON FINANCIAL STATEMENT

COVID-19 FINANCIAL STATEMENTS

Alert COVID-19 / Finance Executives and Auditors

Finance Executives and Auditors continue to evaluate the impact of COVID-19 Outbreak

Potential impact and implications on assets, liabilities and results – both present and future

Events after the reporting period

Fair value measurement and Assets impairment

Expected credit loss assessment

Risk assessment of the entity

Events after the reporting date: Should COVID-19 be accounted for as an adjusting or non-adjusting event?

Financial statements disclosure requirements

The magnitude of the disruptions by the outbreak to their business

The Management’s assumptions about the recoverability of an asset or settlement of a liability

The information about those assets and liabilities subject to significant estimates and uncertainty

The estimates and uncertainty would generally be of:

Variable consideration and other constraints on onerous contracts with customers and suppliers

NRV of inventories

Useful life and residual value of property, plant and equipment, intangible assets and right-of-use assets

Measurement of expected credit losses

Fair value measurement of assets and liabilities

Going concern assessment

Based on all of the above are adjusting/non-adjusting events