1. Financial Accounting (volume approx. 1.100 words)
The Corona pandemic has consequences for companies and their future financial statements. Some experts have even warned that some financial statements are ticking time bombs. Please, recall our Accounting I and Accounting II lectures and the financial statement analysis you conducted.
a. Consider the industry of the company you analyzed. What could be the impacts of the Corona pandemic on that specific industry? Are you of the opinion the industry is benefitting or might the industry be negatively influenced by the crises?
Notes***Here we are talking about the oil/gasoline industry. The company being referred to is Shell. In this part you should talk about how the corona crisis could/has affected the gasoline industry. Explain why this is happening. Does it look like it will continue for a long time? Are you of the opinion the industry is benefitting or might the industry be negatively influenced by the crises?
b. In a second step, please consider the company you analyzed and elaborate on at least three items within their financial statements, which might show an impact at year-end of the next accounting due to the Corona crises. Why do you think could these items show an impact? Please include at least one item of the Statement of Financial Position (Balance Sheet) and one item of the Statement of Comprehensive Income (Profit and Loss Account).
Notes*** For this you should think a bit into the future. Again we are talking about shell. I chose 3 items to analyze but if you can think of better ones please let me know so we can discuss. For the Statement of Financial Position (Balance Sheet) I chose Total equity, for Statement of Comprehensive Income (Profit and Loss Account) I chose Revenue and the last one is income for the period. So for each 3 categories you should analyze how these categories would be affected by corona. You will have to do some research on this but the main point is this: No one is driving anymore so gas prices have gone down drastically in corona times. This means revenue and income will probably go down. But again, you will need to do some online research for this to get specific answers.
2. Management Accounting (volume approx. 275 words)
How can Management Accounting support the management team of a company in times of crisis, like the current corona crisis?
Notes***** Advanced college level writing
If you have any questions or are not sure please contact me immediately.