Topic: Method in Imrad

Link of the topic: https://writingcenter.gmu.edu/guides/imrad-method-section

Activity: Analyze some of the method sections below by identifying the moves and sub moves present in the reports and highlighting the contextual clues in identifying these moves.

At the beginning of 2020 Coronavirus has entered the world that caused a big problem in the worldwide financial markets which showed unsureness, volatility and which caused a decline in prices. The Covid-19 related conditions, in general, are expected to cause cash flow problems, financing constraints, supply chain disruptions, consumer demand decline, investment deteriorations, underutilization of assets, and unavailability of human resources. Covid-19 is having an impact on many areas of accounting and reporting for all industries, requiring specific accounting and disclosures in the financial statements (Rehman &Malik, 2020). The decrease in net realizable value is expensed in the period in which it occurs. There are many reasons for a loss in net realizable value, such as damage, pollution, obsolescence, physical deterioration, fluctuations in prices, decrease in demand, or other reasons, all this is a result of the Coronavirus outbreak. So, the inventory should be evaluated seasonally. With the presence of obstacles to production such as a shortage of labor or materials due to Covid-19, which will lead to a significant decrease in the level of production, then companies will need to reconsider the cost of inventory and what affects it (Maloney, 2020). The inventory turnover is expected to increase as the goods that are close to their expiration date will be sold faster and at minimal cost, as some entities are now disposing of their stock at the lowest cost because there is uncertainty in the market now until return to normal capacity. This will affect the net realizable value so the inventories will not be greater than the net realizable value. The impact of government measures may also lead to inactivates of capacity in terms of lack of human resources, shortage of supplies, and market powerlessness to allocate fixed production overheads to inventory based on normal capacity (Felix, 2020). The government had to follow policies for the success of restricting the spread of the covid- 19 through lockdowns, perhaps one of the most common policies that affected many and lead to cease work. During quarantine, many consumers changed their suppliers into basic materials and avoided luxuries, as the value of the inventory decreased in terms of being (damaged, expired, or sold). Many companies faced major problems including Car manufacturers such as Ferrari and Volkswagen, suspend production in Europe, Mcdonald's closes seating areas in the U.S, the stock market crashed in March 2020, Luxury goods companies Gucci and Hermes are closing all their manufacturing sites. Thus, supply chain networks have a significant negative impact on the global economy because of Coronavirus, According to (Fernandes, 2020). A study by (Rehman & Malik, 2020) discussed that the consequences of Covid-19 adversely affect the recoverability of inventories. The adverse consequences could include disruption in transportation arrangements and suppressed customer demand. The recoverability of inventory items from a normal sale could be an issue, especially for companies holding perishable items or large quantities of inventories. Due to lockdown and 5uncertainty about the market conditions, the company's inventory may require a write-down based on the NRV, However, another implication of disruption of business due to Covid -19 may affect in estimating NRV Such as Fluctuation in estimated selling prices due to changes in customer demand mainly for perishable goods or goods with short shelf lives, Change in estimated costs to complete due to an increase in the cost of material or labor, Sales and purchase contracts may not be fulfilled resulting in excess inventory, in turn affecting NRV. The company in the current scenario would be required to use judgment in estimating the net realizable value for inventory. This should reflect the latest expectations of selling prices and projected costs to complete after considering the impact of covid-19. Further, the estimation of NRV should also take into consideration fluctuations in selling price or costs to sell, based on the evaluation of future events, Because of Covid-19 related restrictions, companies might have reduced production levels. The significantly low production levels could be due to factors such as reduced demand, labor and material shortages, and unplanned facility. Even the company has significantly low production levels however costs would still be incurred. One of the biggest challenges that retailers face during inventory management is phantom inventory, where the system shows that there is stock on the shelf but in reality, there is no, or when the system reflects that the stock has run out but it's not. So During the outbreak of the epidemic and the intense storage and unprecedented demand it reflected, which exacerbated the problem of Phantom inventory and took shutdown measures consumers' shopping behaviors changed, which made knowing the extent of availability or depletion of goods difficult. Unfortunately, systems for capturing phantom inventory behavior are outdated, disparate, and not systematic and do not fully communicate with each other, But there is a method that can be used for fast-moving elements by using Business Intelligence Management, which allows data analysts to analyze sales and inventory data daily on any products required to determine the difference between sales trends and inventory numbers. It's difficult to catch all phantom inventory cases due to the huge amount of data. But this approach helps in better availability of high-demand groups on shelves, especially in light of the Corona crisis, and this was written by (Tilwani,2020). In another study by (Vivek, 2020), said that the sectors affected by closures at the state level have multiplied as a result of the covid19 virus, including manufacturing, nearly 75% of companies reported disruptions in one form or another in supply chains due to mers-coG- related transfers, as well as the lack of an emergency plan for about 50% of companies in the event of a supply chain failure, where more than 50% of receiving unexpected orders is a weak signal of supply chain components, including inventory. If one part of the distribution system fails. The company must work on the maintenance of its devices remotely with a minimum of employees on-site because it may lead to the interruption of the warehouse and the decline of production and the failure of customers to receive goods, as well as the social spacing between warehouses and employee sections through advanced techniques tracking people under the protocols of social spacing within the organization and prevent employees from roaming in areas they do not need. 6According to the study by (SHCAMIJL The educational materials issued by the SAICA's Accounting Premises lCommittee are educational materials, highlighting requirements in IFRS that are of interest to entities considering how tlte epidemic affects their accounts, for financial periods ended December 3], Efil, or after, the cost of inventory may be non-refundable in some matters, including inventory damage, low inventory selling prices, or if tlte estimated costs incun'ed for sale may increase, usually reduce inventory to value. Net can be achieved on a linevby-Iine basis in such circumstances. Similar items must be collected, as in tire case of inventory elements in tlte same production line, because some purposes or uses are produced and marketed in the same area and cannot be separated from others. The evaluation and identication of tlte net value that can be stripped can be inuenced by different factors. Therefore, there can be an impact on the net realizable value that can be achieved due to increased inventory costs at a price higher than the sale price of this item or because of obsolescence or damage Inventories are measured at the cost and net realizable value {Net realizable value : estimated selling price - estimated costs} coronavirus may affect in this estimated at many ways, so companies need to estimate under reliable evidence witlt taking into consideration effect of events happen after the end of the reporting period f'Donovan, Illl]- The inventmy manager must identify the inventory items that generate more revenue and not remain idle for supply during the outbreak of Coronavims. Inventory is classified in a manner according to ABC priority availability, and be the priority of the elements that generate more money, to minimize inventory accumulation due to the tight supply due to closures during the outbreak of the epidemic fDralteley, will]. In the current scenario, that the slow production process and a decrease in supply for many dealers, including car dealers, who wanted to buy new cars from the effects of the closures due to low levels of supply by agents and because the agents allocated less to new vehicles, the dealer's deparmient must increase the supply of used vehicles to compensate for the decline in new, according to ['I'blebuath, 11120). 1|riti'ltile lockdown measures varied from extreme to mild around the world, these restrictions controlled the demand waves for a lot of products. which has sent a shock to all the supply chain methods around the world, which lead a lot of businesses to take extreme measures to survive through the covid pandemic. Covid proved to be the biggest test for business in history. The fast part of this equation Tackling the principle of inventory management and how teams should manage demand waves during and way after this pandemic is over, as the toll is heavy on everyone people need to learn to be flexible with there inventory planning managing, and executing it so they will meet the companies essential goals for surviving through this pandemic. The second part of this Predicting the way that buying patterns are made and how could navigate tltrough them to make the better choices of products to introduce to people. keeping a close eye on the buying trends is essential because if companies won't keep track of them in times like these they will get left in the dark, and only the companies who adapt are the ones who will survive in times like these (Pan,2020). Just-in-time inventory policies account for optimistic levels of demand and supply variations and were rendered suboptimal during the initial panic buying phase. With the risks now more apparent and the costs of failure more prominent, there is an attempt at self-reflection within supply chain management. We are already seeing a big shift in retail supply chain strategies. One area where there will be an increased focus is on technological aids to reduce risks and manage supply chains better. "In many ways, the widespread impact of Covid-19 has been a forcing-function for innovation, and shippers for whom digital transformation wasn't a top priority are suddenly moving quickly. Companies will be willing to bear the incremental cost for business-critical items, and this will be offset by a continued drive for procurement to work with suppliers to reduce cost in other areas and reduce the business criticality associated with a product, service, or supplier. Procurement will do this through detailed product/service tear down and redesign, through to the introduction of new suppliers and dual sourcing strategies. "However, the cost is such a powerful driver that Just-in-time inventory is not going to go away. Global supply chains are having a 'rethink' on their sourcing models. Alongside increasing inventory levels to at least some degree and accelerating investment into technologies, particularly visibility and command and control-related ones, there will also be a reappraisal of geographic links and vulnerabilities. Companies will need to spread risk more effectively and have backups in place for first, second, or even third-tier suppliers and beyond, depending on the complexity of their product. Importantly, there simply isn't enough margin in many supply chains to do away with just in time and its overall efficiency. When business-as-usual returns, it will largely outcompete other models. Therefore, massive inventory buffers aren't suddenly going to make a return and some degree of geographic resiliency will have to be considered (Hadwick, 2020). 8