The Covid-19 pandemic is affecting the economic prospects of businesses significantly. 

• Economies have shrunk globally as borders close and trade declines.  

• Economies that rely upon international trade have gone into recession. 

• Most other economies have been pushed into recession globally, from reduced domestic demand caused by elevated unemployment. 

• Businesses that rely upon international suppliers or international customers have stalled. 

• Businesses that rely upon domestic demand have stalled. 

• Governments are supporting businesses and consumers with liquidity payments. Select a publicly listed company from the South Pacific Stock Exchange or a Reporting Entity from Fiji (see Lecture 1 handout for the categories of companies that fall under reporting entity in Fiji). If unsure, please consult your tutors while choosing your company. Analyze the latest financial and annual report of the company selected, to identify the specific, economy-related risks to which that company is exposed. Forecast financial effects on the company’s revenues, and expenditures and on the values of assets and liabilities, consequent to the risk outlook.

 Required Write a 750-word report that includes:

1. An explanation of the sources of impairment risk specific to the company selected.
2. Analysis and discussion of the forecast financial effects on the company selected. State all assumptions in detail and state the accounting policies adopted in your analysis.
3. A discussion on whether the impairments identified, and forecasts made in your analysis affect the capacity of your company to report as a going concern