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Implications of Covid-19 on Business Reporting


Implications of Covid-19 on Business Reporting

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Produce an article suitable for publishing in an accounting magazine on the topic of “Implications of Covid-19 on Business Reporting” 

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Businesses are the activities which are formed with an aim of fulfilling the needs of the consumers. The welfare and the future of business operations will depend on the activities the business does and how those activities are impacting the overall society. So, most of the businesses operating today try to differentiate themselves from the market via unique features and this is mostly a key success factor in its operations.

In forming a success strategy, any business will require to know its operating results for the given period of time. Since most of the businesses are operating well within the boundaries of the strategies defined by the top management, based on the business scenarios developed, having the correct information at the correct time will help those businesses to thrive their operations and further push themselves towards success. The need for a proper business reporting model comes into play in order to fill this gap. Most of the businesses operating today are using reporting models which are developed having the business information requirements in mind. So those models are providing vital information to the management on the operating performance and financial performance of the company which could be much useful in business decision making.

The subject business reporting itself covers a vast area in terms of providing the information to the management. As the name itself implies, a business report enables the stakeholders to obtain information about the business’s operations and its performance. While there are different types of treatment for business reporting targeted different stakeholders, the most popular two models are financial reporting and management reporting. Management reporting is widely used by the management of organizations to take their decisions. Those information are complete information which contains every detail about the company, its operations and its effectiveness. Management reporting makes an impact to the organization and its operations since it's directly involved in making the strategy of the company.

On the other hand, the financial reporting focuses on providing the information required for all kinds of stakeholders in their decision making. Unlike the Management reporting, those information are mostly brief and in summary in order to make them easy to understand and compatible to be shared and compared with the industry. Further certain guidelines and rulings have been developed which are adopted universally to ensure the consistency of reporting where those are made mandatory to be followed. The widely used such principle is the IFRS which stands for International Financial Reporting Standards which is commonly followed by all the organizations in the world.