The Potential Accounting Effects on Financial Reporting in the Light of Financial Crisis and (COVID-19) Crisis and Ways to Counter its Consequences: Survey Study

Abstract

An analysis of the current situation of the economic problems suffered by Iraq and the countries of the world, which have accumulated and intensified as a result of international, regional and local factors, including the international financial crisis, which resulted from the sharp drop in oil prices, in addition to the Corona pandemic. Academic research questions are raised here: Whether the economic crisis could have been avoided, whether the severity of that crisis could have been reduced, and what is the role of the accountancy profession and auditing as the profession responsible for providing the financial information necessary for the purposes of economic planning, hence the research philosophy was developed by studying the validity of these opinions. This is due to the fact that some of the causes of the economic crises and their aggravation are due to the inactivation of the role of accounting information in economic planning activities, not to mention the non-adoption of modern scientific methods and techniques in choosing them Those projects. 

The research started from a basic premise that activating the role of the accountancy profession leads to the creation of mechanisms that work to prevent economic crises and to limit their increase, and a number of conclusions have been reached, the most important of which is the statement that accounting information has an important role to play in limiting economic crises by limiting administrative and financial corruption, as well as The main reason for the current economic crisis is the decline in the price of oil internationally and the existence of a defect in the management of the oil file, in addition to the outbreak of the new Koruna virus, direct human losses in the form of the increasing number of deaths and infections of the virus, which extend to include many serious economic effects. This warning warns of the possibility of the international economy entering a recession stage whose consequences cannot be predicted at this moment.  This has led many countries to take unprecedented measures in an effort to curb the spread of the virus.  Governments and international economic organizations are also striving to mitigate the negative effects of the spread of the virus on the global economy.  This research seeks to identify the economic effects of the eruption of the new coronavirus, whether on the global and developed economies, or the economies of the Arab region.

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A set of strategic recommendations were reached, the most important of which is the initiation of economic and financial reforms that reach different aspects of life, which is not confined to fighting corruption but goes far more than the level of comprehensive development comparison and the formulation of economic plans that can deal with the phenomena of unemployment and inflation that generate corruption in its various forms One of the most important tactical recommendations is the establishment of an integrated system of taxation and customs duties on foreign imported goods, aimed at protecting products produced in-country and restricting imports to goods that cannot be produced in-country.