Accounting effects of the reallocation of items due to the covid-19 contingency

Abstract

Our world today, hundred percent globalized, has countless situations, which can lead to changes that will affect not only a community but many countries at once. Thus, the year 2019, considered a catastrophic year for a large part of humanity, set the tone for countless situations in the field of health, in the social, economic, educational and even in the family sphere. All of them were caused by a pandemic that hit the whole world, which we first knew as a local disease that affected only a population of China, but as time passed, and when it acquired large dimensions, it became the great global pandemic called covid-19. These situations in turn brought an infinity of modifications, which each country had to handle in a very particular way, depending on its conditions. Our research arises from the need to manifest in Accounting, situations that arose in the economic aspect derived from the covid-19 Pandemic and in what way they will affect companies in their accounting records at the end of fiscal year 2019 and possibly, in future exercises. To achieve the above, we have carried out a study of the Assets and Liabilities accounts based mainly on the Financial Reporting Standards, these items, we consider, will undergo internal modifications in their accounting structure, which implies, if necessary, the consider some changes, whether at a lower or higher level, in such a way that it is possible to meet the accounting objectives such as providing truthful, timely and reliable information. The relevant results presented in this proposal are, firstly, to show that there were economic effects worthy of being reflected in the Accounting of each of the economic entities. Secondly, that the main accounting items must be analyzed and, if appropriate, make the relevant adjustments, so that, when the financial statements are prepared, they fulfill their mission of reflecting the financial reality that the company is experiencing and if it is not carried out changes in the accounting items to which we mention, the objectivity of the accounting will be violated.