could: reported and direct speech

[anhnha]

Auditing firm Deloitte said that this situation could affect the company's solvency in the next 12 months.

Source: "Shares slide as trading tumbles.", Viet Nam News.

It is a reported speech. I am wondering what is the direct speech.

1. This situation can affect the company's solvency in the next 12 months.
2. This situation could affect the company's solvency in the next 12 months.

 

[Grumpy]

Either 1 or 2 could have been the direct speech. Number 2 is more likely.

 

[anhnha]

I would like to know why #2 is more likely.

 

[MikeNewYork]

I would like to know why #2 is more likely.

Because the accountant was talking about a possibility more than an ability.

 

[Raymott]

I'm wondering how 1 is possible at all.

 

[Tdol]

I'm wondering how 1 is possible at all.

1 is grammatically OK, but it's almost certainly not the original.

 

[anhnha]

I'm wondering how 1 is possible at all.

Do you mean that the situation don't have ability to affect something?

 

[Raymott]

Do you mean that the situation don't have ability to affect something?

No, I mean that if there's a possibility of something happening in the future, it could happen. "It can happen" sounds completely wrong to me in this context. "It can happen" means something like, "It's happened before, so we know it can happen." I can't see a use for 1.

 

[riquecohen]

Do you mean that the situation don't have ability to affect something?

Your verb should agree with the subject and an article is needed. "...the situation doesn't have the ability..."