Carefully review the response to the "Problem Identification" you provided during Week 1. Next, provide a clear, useful definition of the problem proposed to address in the Problem Identification. A high-quality definition of a problemidentifies and carefully describesthe most important contextual factors impacting attempts to fully understand and ultimately solve a problem. Examples of contextual factors include - but are not limited to -- resource shortages, limited technological capacities, community or societal biases that undermine a search for solutions, and a lack of political will to move a problem higher on the agendas of policy making institutions. This should be 3pgs.

INCLUDE WORKS CITED AND CITATIONS

Below is the Problem Identification from Week 1:

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.