Working on Part 4:

Please include citations and works cited.

A definition was constructed and it explored some of the contextual factors and forces acting on the problem being addressed regarding Accounting Management during COVID19. We considered the categories of solution types - e.g., technological, political, social, or organizational - from which a solution might be adopted.Now, it is time to proposeat least twopotential solutions to the problem. Identify and systematically describe each potential solution in a way reflecting full awareness of the contextual factors you identified before.As the AAC&U Problem Solving VALUE rubric indicates, the discussion of potential solutions should reveal a "deep comprehension of the problem." It may be that you're discovering that your original definition of the problem is in need of revision.You may also be reconsidering which contextual factors and forces are most relevant to the search for a solution to the problem.If so, explain fully and carefully. Your response should be approximately 4 five paiges in length.Be sure to include complete, accurate citations to any sources used.

Below is the following work that is being discussed and solved:

Part1:

Introduction

The Covid-19 has been roaming around the globe for almost three years since 2019. However, with the continuous analysis and studies on the vaccine that may control the spread of virus, and in hope that everything will put to an end, in the next decade, most of the businesses will surely be free from questioning themselves their ability to continue a going concern.

It is actually the accounting standards that require management to assess and disclose going concern problems to stakeholders.(IAS 1: Presentation of Financial Statements)However, important questions exist about managers' ability and willingness to provide credible going concern assessments given their role as financial statement preparers and incentives to avoid self-reporting problems.

Going Concern as an Accounting Principle

When we talk about Accounting, there is a principle called Going Concern or also known as Continuity Assumption. The Conceptual Framework notes that financial statements are normally prepared assuming the entity is a going concern and will continue in operation for the foreseeable future. [Conceptual Framework, paragraph 4.1]

IAS 1 requires management to make an assessment of an entity's ability to continue as a going concern.If management has significant concerns about the entity's ability to continue as a going concern, the uncertainties must be disclosed. If management concludes that the entity is not a going concern, the financial statements should not be prepared on a going concern basis, in which case IAS 1 requires a series of disclosures. [IAS 1.25]

So How it Became a Compelling Problem by Working Professionals?

The pandemic has brought so many adverse effects not only on the health of public but also the financial standing of almost all of the business industry leaving numerous companies to cease operations. Some of the companies might be questioning their own capabilities to continue a going concern. Simply put, they have suffered a financial loss attributable to pandemic.

Of course, those with relatively limited financial resources are most at risk, but none are immune to the pandemic's effects.

Hints that this problem actually exists?

The very obvious serious effects of this downfall of numerous companies are the sudden rise in the unemployment rate worldwide. In a study of Congressional Research Service, titled "Unemployment Rates during Covid-19 Pandemic", the COVID-19 pandemic has had a significant effect on labor market metrics for every state, economic sector, and major demographic group.

Among other findings, this report shows the following:

In April 2020, the unemployment rate reached 14.8%the highest rate observed since data collection began in 1948. In July 2021, unemployment remained higher (5.4%) than it had been in February 2020 (3.5%).

The labor force participation rate declined to 60.2% in April 2020a level not seen since the early 1970sthen began a partial recovery in May 2020. The labor force participation rate was 61.7% in July 2021, 1.7 percentage points below the level in January 2020, before the pandemic and the economic recession.

Nonfarm payrolls shed 22.1 million jobs between January 2020 and April 2020, with employment declining to 86% of its pre-recession level. In July 2021, aggregate employment remained 5.4 million jobs below its pre-recession level.

The COVID-19 pandemic has impacted economic sectors disparately. The leisure and hospitality sector lost the largest number of jobs since January 2020, and persons last employed in this sector have consistently exhibited some of the highest unemployment rates throughout the pandemic. Additionally, the education and services sector and the government sector have exhibited the second and third-largest losses in jobs since January 2020, despite relatively low unemployment rates among persons last employed in these sectors.

What Must be the Problem as a Whole?

Had the pandemic comes to an end, the next decade is seen to be the time of hope, freedom, healing and recovery not only in the community but also in business realm. But that will be possible only upon complete control of the virus. However, we cannot in anyway eliminate the possibility that the pandemic is still uncontrollable considering the mutation of virus in different variant especially in populous area of the world.

Variants of viruses occur when there is a change or mutation to the virus's genes. Stuart Ray, M.D., vice chair of medicine for data integrity and analytics, it is the nature of RNA viruses such as the coronavirus to evolve and change gradually. "Geographic separation tends to result in genetically distinct variants," he says.

It must be alarming to say that businesses can no longer endure the losses being brought by this pandemic. This being said, the question as to the ability of the company to continue on a going concern is expected to be the most common word of mouth in all business sectors.

Part 2:

Since 2019, the Covid-19 has been moving across the world for over three years. However, within the next decade, most firms will be free from doubting their capacity to meet their obligations, thanks to ongoing research and tests on a vaccine that may curb the spread of the virus and the hope that all will end soon. IAS 1 Presentation of Financial Statements outlines the general criteria for financial statements, including how they should be formatted, the minimum content requirements, and overarching principles such going concern, accrual accounting, and the current/non-current differentiation.

A financial report, a statement of profit or loss and other comprehensive income, a statement of changes in equity, and a statement of cash flows must all be included in a complete set of financial statements, as per standard. In September 2009, IAS 1 was reprinted, and it now applies to year periods beginning on or after January 1, 2020.

History of 1. IAS

April 16th, 2009

Improvements to the International Financial Reporting Standards (IFRSs) 2009 (classification of liabilities as current) 6 May 2010 Amended by Improvements to IFRSs 2010 for annual periods starting on or after 1 January 2010 (clarification of statement of changes in equity)

Effective for yearly periods beginning on or after January 1, 2011, or concluding on or after May 27, 2010. The Presentation of Other Comprehensive Income was issued on September 30, 2010, with only a comment deadline of June 16, 2011. Amended by Presentation of Items of Other Comprehensive Income, effective for annual periods beginning on or after July 1, 2012, 17 May 2012 Amended by Annual Improvements 2009-2011 Cycle, effective for annual periods starting on or after July 1, 2020 (comparative information). However, important questions exist about managers' ability and willingness to provide credible going concern assessments given their role as financial statement preparers and incentives to avoid self-reporting problems.

Management is required under AS 1 to examine an entity's capacity to continue as a going concern. The uncertainties must be reported if management has grave doubts about the entity's competence to continue as a going concern. If management determines that the business is not a going concern, the financial statements should not be prepared on that basis, and IAS 1 mandates a series of disclosures in such situation.

[Accounting Standard 1] .25]

4.1 Conceptual Framework

Resource Scarcity

Current and projected profitability, debt repayment schedules, possible sources of replacement funding, and the capacity to online services should all be considered by management. If management determines that the business should be liquidated (either voluntarily or there is no sensible solution), the going concern assumption will be undermined, and the financial statements will have to be prepared on a different basis, such as a liquidation basis.

Technical limitations

IAS 1 describes when financial statements are produced on the basis that the business will keep functioning as a going concern and provides guidelines on how to do so. Management must examine the entity's competence to continue as a going concern at each reporting date, bearing in mind all relevant information on technology regarding the entity's future, according to IAS 1.

So, how did it become such a challenging issue for working professionals?

The pandemic has had a wide range of negative consequences, not only for public health but also for the financial well-being of practically every business sector, leading to the closure of countless businesses. Some firms may be doubting their own ability to continue as a going concern. Simply put, the epidemic has resulted in a financial loss for them. Those with low financial resources are, of course, the most exposed, but no one is immune to the pandemic's consequences.

There is evidence that this issue is real.

The rapid rise in the unemployment rate throughout the world is one of the most visible and severe consequences of the collapse of countless enterprises. The COVID-19 pandemic has had a substantial impact on labor market indicators for every state, economic sector, and major demographic group, according to a Congressional Research Service report titled "Unemployment Rates During Covid-19 Pandemic."

This report reveals, among other things, the following: The unemployment rate hit 14.8 percent in April 2020, the highest level since data gathering started in 1948. Unemployment was greater (5.4 percent) in July 2021 than it had been in February 2020. (3.5 percent).

In April 2020, the labor force participation rate fell to 60.2 percent, the lowest level since the early 1970s, before beginning to rebound in May 2020. In July 2021, the labor force participation rate was 61.7 percent, down 1.7 percentage points from January 2020, before the epidemic and the economic downturn.

Between January and April 2020, nonfarm payrolls lost 22.1 million jobs, bringing employment to 86 percent of pre-recession levels. In July 2021, total employment was still 5.4 million jobs lower than it was before the crisis. The COVID-19 epidemic has had a diverse influence on the economy. Since January 2020, the leisure and hospitality industry has lost the most jobs, and those who were the last working in this area have continuously had some of the highest unemployment rates during the pandemic.

Furthermore, despite relatively low unemployment rates among those last employed in these sectors, the education and services industry and the government sector have seen the second and third biggest job losses since January 2020.

What must the overall issue be?

If the epidemic is ended, the next ten years are expected to be a time of hope, liberation, healing, and recovery, not just in the community but also in the corporate world. However, this will only be feasible if the infection is completely under control. Given the mutation of the virus into numerous variants, especially in populated areas of the world, we cannot rule out the potential that the pandemic is still uncontrollable.

When a virus's gene changes or mutations the virus becomes a variant. According to Stuart Ray, M.D., vice chair of medicine for data integrity and analytics, RNA viruses like the coronavirus develop and alter over time. "Genetically different variations likely to develop from geographic isolation," he explains.

Businesses can no longer withstand the losses brought on by this epidemic, which must be worrisome. As a result, the subject of the company's capacity to continue as a going concern is likely to be the most prevalent topic of conversation across all industries.

Part 3:

The problem regarding accounting management amidst the global pandemic has triggered calls to action for key stakeholders to develop a strategy to create solutions. This process has integrated various academic disciplines including math, business, sciences, humanities, social sciences, and political/social change to obtain the optimal solutions to address the problem. The objective is to identify the role of at least two academic disciplines or professional activities in examining the problem and addressing it.

The process of identifying solutions to problems regarding accounting management amidst the global pandemic has been given priority to many organizations. As the economic growth declines, the need to allocate resources optimally has increased. Organizations are striving hard to find the best alternatives of accounting for resources including cost allocation techniques and optimization of operations to eliminate hidden and unnecessary costs. Therefore, the application of various professional activities such as technology and business has come into play to boost the development of solutions.

To begin with, technology has played a vital role in identifying solutions to problems relative to accounting management during the COVID-19. For instance, the adoption of enterprise management systems such as SaaP Accounting software has enabled firms to optimize their operations in the business model (Sedera, & Lokuge, 2017). This technology has saved firms time by integrating all the accounting transactions in real-time. Additionally, it has integrated all the modules in enterprise management including Customer Relationship Management, Material Management, Payroll, Sales and Distribution, and Business and Analytics to fasten decision making. As a result, businesses have gained the capability of tracking costs and eliminating deadweights as part of a cost minimization strategy during the global pandemic.

Moreover, the business has enriched the process of identifying solutions to accounting management problems in various ways. The concept of budgeting and budgetary control has provided an effective framework for accounting for funds. Businesses have acquired knowledge in setting effective budgets through forecasting and prediction to promote optimal utilization of resources (Fehrenbacher, et al. 2020). For instance, have applied this concept to plan for a sustainable marketing strategy by allocating resources to marketing activities in a manner that is efficient and optimal. Primarily, various budgetary control tools have been employed to avoid wastages.