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Posts by Hafiz Ahmed Zafar

PM JUSTIN TRUDEAU KEY POLICY REFORMS-FOR-SME

LOANS FOR SMES AMID ‘COVID-19’

In an extreme situation of a pandemic or a catastrophe, it’s the Canadian Govt role. Responsibly holding the citizens in such situations is the sole duty of a country. Significantly, it increases the responsibilities by two times or three times. However, the economic circumstances of a country are quite a significant factor.

This is especially in determining how far a country can give support to the citizens. The Govt. of Canada has similarly played its responsible role in combatting issues that have arisen because of the pandemic ‘COVID-19’. SMEs, that are launched recently in the business world need to be stopped from dissolving via loans.

 

Policies announced by the Prime Minister

Hence, the policies announced by the Prime Minister, Justin shall be very helpful. Companies getting dissolved can also be a probability in an unpredictable situation or chaos. In addition to this, going bankrupt due to the current financial crisis. Hence, the provision of recovery loans by the Govt. is a facility for SME’s that can give them rapid stability.

Bankruptcy is a financial situation where an individual or business is undergoing heavy losses. They are unable to pay salaries to their employees. Furthermore, not in a situation to undergo an extreme financial crisis. Under such circumstances the Govt. declares the business and the business owner as bankrupt.

Hence, the role of the Govt. is to control bankruptcies. The current disturbance has a great tendency for bankruptcies to rise alarmingly. The current pandemic is an example as many small businesses can’t avoid situations of financial disturbances and panic.

The measure allows the countries of the EU membership to apply the reverse charge mechanism for a limited period of time with specific conditions also to be taken under consideration. All of this represents a faster procedure.

RECOVERY THROUGH LOANS- FOR UPTO $40K

A recovery process can take time due to business shutdowns for days. Adding insult to injuries there is a complete lockdown as well due to ‘COVID-19’. The respectable Prime Minister of Canada, Justin Trudeau has announced policies and reforms for SMEs i.e. small and medium-sized businesses. The Canadian Govt role in the announcement of loans from the financial crown courts. Especially to businesses that have been affected by the effects of Coronavirus. Such businesses can apply for loans up to a maximum of $40K variable. Hence, depending on the losses that they have incurred and the outcome of the losses.

Mr. Justin particularly mentioned in his speech with emphasis. He said that the Govt. is particularly aware of the challenges and we are announcing a loan recovery scheme. This shall be 1-year interest-free loans for up to an amount of a maximum of $40K.

The Canadian Govt role & Responsibilities

A substantial step in helping the SMEs in recovering from the crisis situation and making things stable for themselves. A recovery process through loans is a designed process by the Govt. to show the value of the business sector. Businesses, mainly talking about SMEs, while earning money are regular taxpayers.

Furthermore, they hold responsibility for the payrolls of many people. Businesses in Canada are mostly insured with business insurance, which means a business can claim insurance if at risk. They can also claim their money from Insurance companies if they are undergoing constant financial losses due to reasons they are not responsible for.

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covertible loans

GOVT. INCENTIVES FOR SME’S IN THE MIDST OF COVID-19

We are going to talk about govt. incentives, The Govt. of Canada has been playing its role responsibly since the start of the COVID-19 pandemic. This has also been evident to a huge extent in the financial sector and while making things economically stable. A well-planned strategy so that businesses esp. SME’s can recover themselves in the wake of the recent happenings regards to ‘COVID-19’.

It’s not only a national level threat. But, it’s a global challenge that has affected many lives as well as the economies. Unemployment can be a major cause that needs to be dealt with, as there have been huge financial losses. The traveling and tourism sector in Canada has also been affected. This has been to a larger extent than in a couple of decades.

JUSTIN TRUDEAU’S ANNOUNCEMENT

27th March 2020 was the date of the announcement made in public. This was related to banks and financial institutions that shall be offering loans that will be 1-year interest-free. Hence, the amount shall be based on the requirements of the businesses. In the same announcement PM, Justin Trudeau also said about the loan forgiveness.

He emphasized that the Govt. can waive off $10K if the businesses and SME’s are unable to pay. This is only for those businesses that can provide proof of their circumstances and losses. This loan shall be beneficial for SMEs mainly to pay off the operating costs. The operating costs can’t be deferred due to the pandemic COVID-19.

The interest of the employees in managing the loans holds huge priorities for the Govt. & Justin Trudeau. These priorities are regards to job security and retention as govt. policies are strictly in favor of employees all over the great country of Canada. The recruitment and retention policies all over in Canada has seen many changes and fluctuations. The main reason for this movement is the level of risks that companies have then it was Pre COVID-19.

Role of Govt. of Canada in Pandemic

The Govt. of Canada has been playing its role responsibly since the start of the COVID-19 pandemic. This has also been evident to a huge extent in the financial sector and while making things economically stable. A well-planned strategy so that businesses esp. SME’s can recover themselves in the wake of the recent happenings regards to ‘COVID-19’.

It’s not only a national level threat. But, it’s a global challenge that has affected many lives as well as the economies. Unemployment can be a major cause that needs to be dealt with, as there have been huge financial losses. The traveling and tourism sector in Canada has also been affected. This has been to a larger extent than in a couple of decades.

The Govt. Incentives

However, scenarios can fluctuate and things can normalize but it highly depends on how quickly the world can be free from coronavirus. Although, the pandemic is highly deadly and dangerous in terms of loss of life. It has also been the cause of many financial losses in parallel.

Vendors who extend credit to a business require financial statements to assess the creditworthiness of the business.

The government also produces financial reports to stay accountable to the public and people. The rules for recording, measurement, and presentation of government financial statements may be different from those required for business and even for non-profit organizations. The requirements for non-profit financial statements differ from those of a for-profit institution and therefore, will not be discussed.

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Government funded loans for businesses 2

JUSTIN LATEST POLICY DEVELOPMENTS & ‘WSP’ AMID

that Prime Minister Justin Trudeau’s latest policy developments are an ongoing answer to the current fight against ‘COVID-19’. This is part of countrywide change management. Hence, sustainable developments from the Canadian Govt. i.e. resistance through action in the form of ‘WSP’ or Wage Subsidiary Program.

As the whole world is undergoing a crisis situation that cannot be taken for granted. In this regard, the Prime Minister has lately announced many policies. These are part and parcel with regard to the current developments of the global crisis. It affected many businesses. The country is under lockdown and there are many self-employed workers and SMEs affected. Innumerable small businesses are currently under financial crisis due to ‘COVID-19’.

JUSTIN LATEST POLICY

The aim of the current developments by Justin is to assure financial stability. The importance is to highlight that businesses are not fully shut down. The Government wants that people can join back work once the conditions are fully stable as normal. Announced by the Honourable Prime Minister in his latest policy developments. Known by the name of the Wage Subsidiary Program, it aims for reforms through policy measurements.

This is as part of the recovery and sustenance efforts by the Canadian Govt. Amid the COVID-19 Outbreak and to overcome its financial effects. Loans are offered by the Govt. to SME’s preferably, and to large businesses.

Liability Valuations

The Govt. has announced that a loan recovery program also for self-employed workers so that their losses can be sustained. This means making reconciliations to make sure that no Self-employed worker sustains losses. A work from the home facility is readily available for people in Canada according to Justin Trudeau’s Policies.

Furthermore, the Govt. is offering work sharing as well. Applies to those whose close relatives are undergoing the effects of Coronavirus. These are people who can’t work even from home.

Helps existing and potential investors and creditors and other users to assess the amounts, timing, and uncertainty of prospective net cash inflows to the enterprise

Separate Valuation of each asset

Materiality, only items material in amount or in their nature will affect the true and fair view given by a set of accounts. transactions are recorded at the cost. It realizes revenue and profits. Duality, every transaction has two effects.

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