Naslov (eng)

Validity of the assumption of continuity of operations to compile financial statements of companies in the period of Covid-19

Autor

Vučković, Dejana
Savić, Bojan
Radić, Siniša

Opis (eng)

Abstract: The subject of the research is testing the risk of bankruptcy and assessing the validity of the assumption of going concern to compile financial reports of selected companies in the food industry during the period of Covid-19. The analysis included five companies each from different sectors of food and beverage production, which operate in the territory of the Republic of Serbia. For bankruptcy risk, testing selected companies used the Z-score model created by Edward Altman in 1993, which was adapted to developing countries. The research period includes 2019 and 2020. Data for the preparation of the paper were taken from financial reports, notes to financial reports and auditor's reports published on the website of the Serbian Business Registry Agency. The research results show that the Covid-19 pandemic affected the operations of companies in the food industry and caused the need for a more cautious assessment of the assumption of continuity of operations to compile the company's financial reports by managers and auditors. The research also established that different companies within the same sector can be affected with different intensities, hence it is not possible to isolate the production sector within the food industry that is more significantly exposed to the consequences of the pandemic.

Opis (eng)

Project: Ministry of Education, Science and Technological Development, Republic of Serbia (Institution: University of Belgrade, Faculty of Agriculture) (MESTD - 451-03-68/2020-14/200116)

Jezik

engleski

Datum

2022

Licenca

© All rights reserved

Predmet

Keywords: financial reporting; going concern; Altman's model; Covid-19 pandemic; food industry

Deo kolekcije (1)

o:28218

Ekonomski fakultet