Recession

In which papers and levels do you think it might appear?

Econoimc conditions such as high interest rates influence accounting decisions, so does the chances of getting a loan based solely sales when there is a downturn in sales. Financial implications for business could mean workforce needs to be reduced (causing slow down in other industries - house bulding, estate agents, retail) different suppliers being sought, minimising costs by investment in machinery to automate production instead of being labour intensive (again reducing workforce). I could go on for hours about how economic conditions affect the accountant - but suffice to say, the AAT should (if they are prudent) address these recession issues in all the management accounting papers PEV, PCR, ECR. I think people need to see the wider effect of this recession - so many young people have never experienced the full force of recession and it culd come as quite a shock to them. AT least, if the AAT address it, the students will have an understanding of the situation.

RANT...If the BOE reduce the interest rates(like the Fed did) then it will be over by then. But , as we all know, the BOE is very timid and not likely to reduce the rates, thereby condeming this country to a long drawn out recession!...rant over!

Looking at overheads and how they still have to be funded when turnover drops, perhaps?