CORONA HUB

After the short-time-work phase IV will expire within the end of June, the government together with the social partners recently announced the first bullet points on the new short-time-work phase V.

Eight of the 13 monitored mid-market industries returned to positive health in H1 2021, as assessed by Grant Thornton’s unique Global business pulse, compared with just two in H2 2020.

In the post-pandemic landscape, a new model of leadership will be needed to enable organisations to thrive. Engendering innovation, collaborating and communicating across the business, and adapting to change have become operational necessities, while empathy and inclusion are the keys to team performance.

Hotels may have escaped many of the negative headlines associated with aviation and tourism, but they still face real challenges.

Demystifying psychological safety, revealing the practical application behind the complex language surrounding it, is vital if leaders are going to succeed in creating an inclusive working environment.

With the opening up of the global labour market thanks to changes in working practices and developments in technology, opportunities to break into new markets and service new customers await.

In April 2021, around 200 leaders from businesses and tax authorities around the world joined experts from the OECD and Grant Thornton to explore the transfer pricing issues thrown up by COVID-19. The level of interest from countries as far apart as Argentina and New Zealand attests to the deep uncertainties over transfer pricing and resulting concerns over the potential for double taxation and dispute.

The next decade is likely to be a period of significant change for the automotive industry. Emerging technological innovations, government policy around sustainability and changing business models mean that Original Equipment Manufacturers (OEMs) and suppliers will all need to adapt.

COVID-19 has been an unprecedented shock for the global aviation industry, resulting in fleets of idle aircraft, empty airports and a huge drop in passenger numbers. And while large-scale vaccination programmes offer hope, some level of disruption looks set to remain for a significant period of time.

The hotel industry is used to dealing with disruption, but never on this scale. While previously only localised events like hurricanes could result in long-term closures, 2020 saw a widespread drop-off in customers looking to stay in hotels.

The social partners have agreed on a further extension of short-time work. As of 1 April 2021, short-time work phase IV can be applied for currently for another 3 months until 30 June 2021. A gradual phase-out of Corona short-time work is planned from July 2021.

The retail sector is the largest industry in Austria - more than 400,000 employees and around 15,000 apprentices are employed in this sector, for which the corresponding collective trade agreement. The "OLD" salary system, which has been in place for 45 years, must now be replaced by the "NEW" salary system by every company by December 31, 2021 at the latest. In the following article we would like to summarize the most important key points of the changeover.

It is safe to assume that for the majority of retail businesses, 2020 has offered some unique challenges. Lockdowns resulting from the COVID-19 pandemic have affected parts of the retail industry differently, with some owners having to close temporarily and some thriving in the new environment.

The impact of COVID-19 is expected to have a significant impact on the going concern assumption for a large number of entities. Some entities which were previously a going concern may no longer be. Many entities will need to apply significant judgement and will be required to consider the impact of material uncertainties in assessing the entity’s ability to continue as a going concern.

The aviation industry has been significantly impacted by the disruption and travel restrictions resulting from the COVID-19 pandemic. With a huge portion of the global fleet of passenger aircraft sitting idle and airlines, lessors, airports and support businesses facing a drop in revenues, we look at the steps businesses can take to survive and adapt.

The retail industry is currently in a period of disruption unique in its scale and severity. The global outbreak of COVID-19 has impacted parts of the industry in different ways. While businesses in the grocery sector grapple with supply chain issues, those selling consumer goods and apparel have been challenged by store closures and rapid growth of online sales

The hotel industry is dealing with an unprecedented crisis due to the disruption caused by the global COVID-19 pandemic. With hotels shut or operating at severely reduced capacity and with customers in lockdown, we look at the steps businesses can take to not only survive but also put themselves in the best position for reopening.

Annual financial statements will always be a critical communication to investors and other stakeholders. But how effective will they be in explaining to your stakeholders how the global COVID-19 pandemic has affected your organisation?

In order to provide further support to those entrepreneurs and business owners who are particularly affected by the renewed lockdown in November, the government has announced adjustments to phase III of the short-time work program.

The Austrian Social Partners have agreed to extend short-time working. As of October 1, 2020, phase 3 of short-time working can be applied for, currently for another 6 months until March 31, 2021. According to the Austrian Social Partners, an extension beyond this for another six months from April 1, 2021 will become necessary and is being planned due to the particular impact on certain sectors.

The COVID-19 global pandemic has resulted in economic consequences that many reporting entities may not have had to previously consider. One of those consequences is their ability to repay loans. In response, some lenders have agreed to changing the borrowing terms or providing waivers or modifications to debt covenant arrangements.

There are several accounting considerations the COVID-19 pandemic has triggered in relation to IFRS 9. In our view one of the most significant is in relation to hedge accounting and highly probable cash flows.

In order to cushion the economic impact of the Corona pandemic, reorganization under insolvency proceedings will be facilitated. In any case, the affected companies will have longer in 2021 to implement their reorganization plans.

Progress towards female equality in senior leadership is accelerated when men act as allies. Informed by Grant Thornton’s research into the global mid-market, this article reveals what being a male ally looks like, and outlines the practical steps businesses can take to drive action and remove the organisational and cultural barriers to male allyship.

Since the beginning of the war in Ukraine hundreds of thousands of people have fled their homes. In order to provide support to the Ukrainian refugees as soon as possible, the EU Mass Influx Directive (EU Directive 2001/55/EC) was activated on 03.03.2022. This grants subjects a temporary residence permit, access to the labor market, social benefits, residential, medical care and educational opportunities.

All employees who work abroad must carry an A1 certificate with them due to the EU regulation (VO 883/2004 as well as VO 987/2009). This regulation applies not only to the posting of employees, but also to short business trips abroad. Therefore, an A1 certificate is required for every cross-border activity, no matter how short, and from the very first day.

After leaping back strongly from the darkest days of the pandemic, the global mid-market could only manage a small additional step forward in the second half of 2021, as tracked by the Global business pulse, Grant Thornton’s index of health among mid-sized companies.

The new lockdown brings with it changes to short-time work. The aim is to help companies reduce personnel costs and maintain jobs. For this purpose, there are some new features and reliefs, provided they are confirmed by law.

At the COP Conference in Glasgow over the next two weeks, over 25,000 people representing 200 countries including policy makers, negotiators, journalists and world leaders from business and politics will meet to agree accelerated reduction of emmissions and collaborative means to keep the forecast global temperature rise to under 1.5 degrees.

Mid-market businesses around the world want to accelerate their ESG and sustainability journey.

Reforms to the international tax framework have been debated and discussed at length in recent years.

On the occasion of the current ECJ case law, the new LSD-BG was amended accordingly.