Question

Briefly summarise the importance of the operating and financial review (OFR) in assessing how the financial information can assist users to make resource allocation decisions in light of the current COVID-19 pandemic. You may need to refer to some financial and business periodicals/newspapers for the financial impact of the crisis.

Answer 1

This survey, our sixth since emergency measures to slow the COVID-19 pandemic took hold in the US, reflects the views of 330 US finance leaders during the week of June 8. It was a week when rising infections in a handful of US states gave voice to fears that the pandemic will not slow down on a reliable timetable. More states lifted stay-at-home orders, businesses started to reopen and US government data signaled a plateau in the number of people seeking unemployment benefits. It was also a week when we learned the US economy officially entered into a recession in February, the Federal Reserve warned of a 6.5% contraction for the year and the number of confirmed COVID-19 cases in the US topped two million. Compounding these pressures, business leaders — and the entire nation — continued to come to grips with racial inequality as demonstrations took place against injustice across the country.