Open AccessEVALUATION OF THE MACROECONOMIC CONSEQUENCES OF NATURAL DISASTERS AND SUBSEQUENT DISCLOSURES IN THE FINANCIAL STATEMENTS ON THE EXAMPLE OF A CORONAVIRUS PANDEMIC
Author(s) -
Р. Кузина
Publication year - 2020
Publication title -
vìsnik. ekonomìka/vìsnik kiïvsʹkogo nacìonalʹnogo unìversitetu ìmenì tarasa ševčenka. serìâ ekonomìka
Language(s) - English
Resource type - Journals
eISSN - 2079-908X
pISSN - 1728-2667
DOI - 10.17721/1728-2667.2020/209-2/1
Subject(s) - natural disaster , natural hazard , vulnerability (computing) , scarcity , hazard , business , natural resource , risk management , risk analysis (engineering) , environmental planning , economics , natural resource economics , actuarial science , development economics , finance , political science , geography , computer security , computer science , chemistry , organic chemistry , meteorology , law , microeconomics
The article reviews the macroeconomic consequences of natural disasters based on the ECLAC methodology, which separates direct physicaldamage from indirect damage and additional or secondary effects.A study of the impact of natural disasters on long-term economic growth and development has shown that the scarcity of financial resourcesafter a natural disaster reduces future growth and requires the disclosure of risks associated with dangerous natural phenomena for three reasons.Firstly, there are large opportunity costs associated with diverting scarce financial resources into relief and disaster recovery efforts. Secondly, natural disasters can damage an already complex budgeting process. Thirdly, natural disasters place high demands on internationalaid resources, diverting resources from development. Natural disasters have a negative impact on both the short and long term. These developmentsrefute the somewhat simplistic notion of a general decline in vulnerability to natural disasters as the economy grows. Instead, a more sophisticatedperspective needs to be adopted and applied when conducting detailed macroeconomic risk assessments. Based on the results of such assessments,the risks associated with natural hazards should be included in general development policies and plans.Risk management strategies should also reflect the fact that disasters occur in different hazard categories (climatic, geophysical or epidemic)and entail different risk reduction options.It is also necessary to assess the experience gained from specific events and, if necessary, take appropriate action. Disasters can cause policyand institutional innovation changes that ultimately benefit, in some cases, not only in reducing vulnerability but also in supporting economic growthand development: deregulating agricultural investment, applying climate forecasting to reduce the impact of climate variability, financial riskmanagement mechanisms.In order to manage risks and mitigate the effects of natural disasters by informing users of financial statements about possible side effects ofthe pandemic, the issue of disclosure and recalculation of financial statements was considered to reflect the effects of coronavirus on companiesand assess financial risks.