ACC203: Financial Accounting 2
Background to the case study:
Assume that you just square measure a graduate comptroller operating for McKenzie and Associates a public business firm settled at 668 patron saint Street, Melbourne, VIC 3000. The manager of your firm, Ms Maria McKenzie has asked you to draft a letter in response to Associate in Nursing email received from a consumer – mister Con alloy, the director of alloy Ltd, raising a key accounting issue relating to his company – see the copy of the e-mail on following page. the utmost length of the letter is one.5 pages. you must address all the technical issues/discussion once the letter on separate pages.
• half A: Technical part 100 percent – This mark covers the technical content of your recommendation and therefore the rationalization on every of the problems, the calculations and therefore the sources used.
• half B: Communication Skills – Letter Writing 100 percent – This mark covers the generic skills of missive writing; layout, clear which means, structure and organization, applicable tone and synchronic linguistics, writing system and punctuation etc. The assignment is meant to check the subsequent skills:
Your data and your ability to analysis the problems and so apply the data fitly victimization judgment to properly determine the relevant standards and legislation that relate to the problems raised by the consumer.
Your communication skills – missive writing
Re: Accounting Issues: Year Ending thirty June 2018 From: Con alloy (conpewter@pewterlimited.com.au) Sent: five Gregorian calendar month 2018
Thank you for your telephone call this morning, as united i’m emailing you relating to the accounting problems we tend to shortly mentioned. By the thanks to assist the accounting team in our decision-making method may you please check that you reference any relevant sources with reference to your recommendation, for instance, AASBs, companies Act, and relevant websites. Here is that the background to our drawback – as you recognize, alloy Ltd could be a leading company within the sale of frozen and canned fish manufacture. These merchandise square measure sold underneath 2 whole names. Fish caught in southern Australian waters square measure sold underneath the whole ‘Artic Fresh’, that is that the whole the corporate developed once it commenced operations and that remains used nowadays. Fish caught within the northern oceans square measure sold underneath the name ‘Tropical Taste’, the whole developed by suspicious Tales Ltd. alloy Ltd noninheritable all the assets and liabilities of suspicious Tales Ltd variety of years past once it took over that company’s operations. alloy Ltd has forever marketed itself as operative in Associate in Nursing environmentally accountable manner, Associate in Nursingd is an advocate of property fishing. the general public regards it as a dolphin friendly company as a results of its previous campaigns to make sure dolphins aren’t tormented by tuna fishing. The selling manager of alloy Ltd has noted the efforts of the ship, the Steve Irwin, to disrupt and hopefully stop the efforts of Japanese whalers within the southern oceans and therefore the content that this has received. He has counseled to the board of administrators that alloy Ltd strengthen its environmentally accountable image by guaranteeing to repair any harm caused to the Steve Irwin as a results of makes an attempt to disrupt the japanese whalers. He believes that this action can increase alloy Ltd’s environmental name, adding to the company’s goodwill. He has told the board that such a guarantee can haven’t any result on alloy Ltd’s reported profitableness. He has explained that, if any harm to the Steve Irwin happens, alloy Ltd will capitalise the ensuing repair prices to the carrying amounts of its brands, intrinsically prices can are incurred essentially for selling functions. consequently, because the company’s web plus position can increase, and there’ll be no result on the statement of profit or loss and different comprehensive financial gain, this may be a win-win state of affairs for everybody. The chairman of the board is aware of that the selling manager is incredibly effective at mercantilism concepts however is aware of little concerning accounting. The chairman has, therefore, asked Pine Tree State to produce him with a outline advising the board on however the proposal ought to be accounted for underneath the money reportage Standards and the way such a proposal would have an effect on alloy Ltd’s money statements. Please respond by letter (not email) as i’d wish to gift this to the Board. I anticipate to hearing from you shortly.
Regards
Management Accounting
Management Accounting
Management Accounting,The overall aim of this unit is to introduce the fundamentals of management accounting which apply to the wider business environment and the organisations which operate within that environment. Students will explore how management accounting uses financial data to aid planning decisions, and the monitoring and control of finance within organisations.
