A Real Estate Focuses on Covid-19 Accounting Considerations - The Case of Abuja, Federal Capital Territory in Nigeria
DOI:
https://doi.org/10.47672/ajacc.1523Keywords:
Covid-19, Real Estate, Federal Capital Territory, Accounting Considerations, Rental Market, Pandemic, Revenue Recognition, Financial Reporting, TaxationAbstract
The COVID-19 pandemic quarantine has affected every sector and area, including families, communities, and economies worldwide. Global businesses have suffered income losses, higher operational expenses, and delayed credit collection. To address these challenges, the government should implement fiscal stimuli for the real estate industry through central banks and mortgage financing regulators. This will preserve investments, save low-paying jobs, and maintain housing affordability for low-income families. Lowering mortgage interest rates and expanding access to preferential home finance loans are crucial measures. This research focuses on accountants' roles in Abuja's real estate business and examines the impact of COVID-19 on the market. Understanding the effects of mortgage financing difficulties is essential for assessing market competitiveness. The pandemic has affected every aspect of the real estate sector, making it important to consider the perspectives of stakeholders. The regulatory framework implemented due to COVID-19 has reduced rental prices and operating income for real estate businesses. The pandemic's global quarantine measures have made financial instruments less attractive, leading to income losses, increased operating costs, and delayed credit collection for organizations worldwide. In Nigeria, property owners are allowed to postpone annual reports by up to three months. This research employs a cross-sectional design and investigates the impact of COVID-19 on accounting practices in Abuja's real estate market. Quantitative data is used for statistical analysis, adopting a deductive approach. The study examines accounting problems faced by real estate businesses in Abuja following the COVID-19 outbreak. It reveals significant challenges such as decreased demand, disrupted supply chains, and increased expenses. Consequently, accounting practices, especially in areas like cash management, cost control, and financial reporting, have been greatly affected. Transparent and effective communication of financial information is crucial during crises to maintain stakeholder and investor confidence.
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Copyright (c) 2023 Emmanuel Opeyemi Otun, Ms. Lovedeep Kaur
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