Accounting And Reporting on The Effects of Natural Disasters is a well-researched topic, it can be used as a guide or framework for your Academic Research.
This report highlights the role, functions, and the specific accounting rules applicable to the forecasting and management of natural disasters by the business. The author proposes a model of management program in case of disasters and failures that is developed on the basis of information obtained from the enterprise’s accounting system and the risk management capacities for model development.
With the help of a case study, the report illustrates the accounting approaches for reporting the effects of occurred natural disasters. The rules for evaluation and recognition of key property items of the enterprise pursuant to the most widely and globally used accounting standards IFRS are presented.
This report presents a review and analysis of natural disasters. The subject of the study comprises the accounting forecasting of potential expenses and losses of assets and resources of the business, cost evaluation, and reporting of further negative effects of natural disasters from an accounting point of view. The objective of the study is to identify the role, functions, and accounting approaches applied by the business for forecasting and reporting consequences from natural disasters.
The main study thesis is to prove that except information, control and analytical function, accounting also has forecasting functions, which is used for the development of business forecasts and risk management strategies in terms of disasters and failures.
At the enterprise level, financial reporting and control are considered the smallest constituents of the natural disasters management systems. They are the fundament on which emergency situations management should be developed within the frames of the respective national economy even on regional and international levels.
Accounting is examined in the broadest possible aspect as an information and control system, which is part of the overall management system of the enterprise.
On one hand, the accounting system ensures high-quality information for the achieved results, the financial and property position of the enterprises from all sectors (business, non-profit, public) of the economy, and on the other hand, it allows the managers and officers to plan and forecast the required manners and means for managing the expenses incurred due to the occurrence of emergency situations and natural disasters.
These are floods, storms, fires, volcano eruptions, landslides, avalanches, earthquakes, etc., which are beyond man s control. Disasters and failures cause significant human and material losses, impede investments and production, affect the principal or supplementary business activities, destroy connections with principal suppliers of raw materials and materials, as well as with key clients and business partners.