Sunday, May 24, 2020
Budgeting, Planning, And Planning - 770 Words
Budgeting is planning, making financial arrangements to spend money now and in the future. In a business, budgeting involves a more detail process. Therefore a measurable plan is created and is used as a tool for making future day-to-day decisions that will be beneficial for the organization. It helps the organization to determine whether not they will be able to accomplish their goals. Having a budget helps an organization to prioritize their spending and focus on the most important things. It also assists organization from experiencing growth stall. Budget Forecasting and Planning aids an organization in tracking their monthly finances and also with their long term plans. (Shastri Stout, (2008) stated ââ¬Å"Budget can be part of the strategic management process of an organization.â⬠(p.20) I work with an organization where budgeting is an integral part of what we do, and Iââ¬â¢m sure that the case with others as well. Iââ¬â¢ve held a few accounting positions in my time but my experience in budgeting is somewhat limited, in that it was basically focus on one main area. In one of my past work experience, I was responsible for the entire departmentââ¬â¢s within the school purchasing of supplies budget. I am still responsible for that portion in my current organization. I had to keep track of spending and my responsibility was to make sure that none of the department went in the red (a term that we use at organization) when it comes to ordering of supplies. In order for me to keep track andShow MoreRelatedProfit Planning and Budgeting5697 Words à |à 23 PagesCHAPTER 9 PROFIT PLANNING AND BUDGETING Questions, Exercises, Problems, and Cases: Answers and Solutions 9.1 See text or glossary at the end of the book. 9.2 A cost center is a responsibility center in which management is responsible only for costs. In a profit center, management is responsible for both costs and revenues. 9.3 An investment center is a responsibility center in which management is responsible for managing costs, revenues, and assets. A profit center is not responsibleRead MoreBudgeting, Planning, And Controlling Management1404 Words à |à 6 PagesA budget is a detailed plan that states how resources will be acquired and used. The budget records the events that occurs before they occur. Budgeting and accounting both involve planning, allotting and distributing financial resources. Budgeting involves more planning and preparing a financial blueprint, but, these planning depend on the accounting of past and current year expenses and profits. The accounting system focuses on documenting and interpreting each financial transaction. After the budgetRead MoreStrategic Planning, Budgeting And Forecasting847 Words à |à 4 PagesDriver for operational and financial efficiency who establishes core metrics that optimize team performance and maximize ROI across organizational functions. ________________________________________ CORE COMPETENCIES ï⠧ Strategic Planning, Budgeting Forecasting ï⠧ Financial Planning and Analysis ï⠧ PL Ownership Management ï⠧ Trade Promotion ROI Optimization ï⠧ Merger Acquisition Integration Experience ï⠧ Revenue Management and Pricing Analysis ï⠧ Talent Selection, Development and Retention ï⠧ PersonalRead MoreBudgeting And Overall Financial Planning931 Words à |à 4 PagesRunning a business requires detailed planning and a host of tools to help hold your processes accountable while measuring their efficiency. 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The consensus of security professionals is that it is only a matter ofRead MoreManagement Control Systems, Planning And Budgeting1690 Words à |à 7 PagesTeam 3: Management Control Systems, Planning and Budgeting Christians of the world today tend to look at life through the eyes of the beholder. At least thatââ¬â¢s what we as Christians want to believe. A recent nationwide survey completed by the Barna Research Group determined that only 4 percent of Americans had a biblical worldview. When you believe the Bible is entirely true, then you allow it to be the foundation of everything you say and do (Azusa Pacific University, 2016). Do you need to haveRead MoreBudgeting Is The Main Goal For Profit Planning905 Words à |à 4 PagesBudgeting is the main goal for profit planning. All businesses should prepare budgets; all large business does (Mowen and Heitger, 370). Budgets are financial plans for the future and are the key component of planning (Mowen and Heitger, 370). Planning and control correspond to each other in an important and dynamic way. Planning is looking ahead to see what actions must occur to realize specific goals. In addition to planning, control is looking backward to determ ine what happened and compare itRead MoreCapital Planning And Budgeting System Process1667 Words à |à 7 PagesCapital planning and budgeting is a very vital piece in the Public Budgeting System process. It is an essential implement in the financial management practice and is effective in both public and private organizations. It is the method which consists of the determination and the evaluation of the investments and the possible expenses by an organization. As explicated by Lee, Johnson, Joyce (2008), capital budgets help in determining how much of each form of investment is needed, and it supportsRead MoreEvaluating Planning Programming Budgeting ( Zbb )1046 Words à |à 5 Pages With Zero Based Budgeting (ZBB) the budget starts at 0 (Financial Web, 2015). The department needs to justify their expenditures for the current year, and the allocation of funds is determined by the merits of their policy rather than the budget that was allotted the previous year (Financial Web, 2 015). There are pros and cons with ZBB. ZBB assures effective allocation of funds, avoids unnecessary expenditures, utilizes cost effective methods, and removes ineffective and counterproductive activitiesRead MorePlanning And Budgeting Processes Are Notorious For Their Rigidity966 Words à |à 4 PagesModule 7 Review Part 1 1. Planning and budgeting processes are notorious for their rigidity and irrelevance to management action.â⬠How can planning be made relevant to the challenges facing a business? Planning and budgeting can be relevant to the challenges facing the business. This can happen by simply including all the departments of the business in the planning and budgeting process. If each department is represented in this process, the issues of each department can be addressed and everyone
Wednesday, May 13, 2020
About The Last of the Mohicans - Free Essay Example
Sample details Pages: 2 Words: 578 Downloads: 2 Date added: 2019/08/15 Category Literature Essay Level High school Tags: The Last of The Mohicans Essay Did you like this example? The Last of the Mohicans is set in the 1757, while the French and Indian war was happening. It uses recognizable American tradition by forming a model created in the image of the initial voyagers. Coopers frontiersman, Hawk-eye, expresses the model American romantic hero. Donââ¬â¢t waste time! Our writers will create an original "About The Last of the Mohicans" essay for you Create order He is a rebel who discards civilization, embraces the environment, cohabits with Native Americans. Hawk-eye assists as a leader into the American land for both the European characters in the story and the reader. Cooper novel offers more than a Eurocentric viewpoint by offering a voice to the Native American characters. He generates a discussion among both sides and demonstrates that a passive coexistence can be achieved. It is in hindsight that Cooper is proficient in creating characters. In a touching dialogue, Hawk-eye and his confidant, Chingachgook, the last of the Mohican tribe, converses the origin of the battle between their two races. Your fathers came from the setting sun, crossed the big river, fought the people of the country, and took the land; and mine came from the red sky of the morning, over the salt lake, and did their work much after the fashion that had been set them by yours; then let God judge the matter between us, and friends spare their words! My fathers fought with the naked red man! returned the Indian, sternly, in the same language. Is there no difference, Hawk-eye, between the stone-headed arrow of the warrior, and the leaden bullet with which you kill? (Cooper 30) When Cooper published his novel, the United States was plunged in the conflict generated by colonization. As America prolonged to enlarge to the west, imprisonment and direct encounter with Native America continued to be an important issue. At the center of The Last of the Mohicans is the imprisonment and loss theme. In the novel, Hawk-eye and his two Indian confidants, Chingachgook and Uncas, lead a soldier, psalmist and the other fellow heroines, Cora and Alice, across the wasteland through a war involving the English, French and Indians while being chased by the Indian opponent, Magua. At the culmination of the novel, following two rounds of hunt, imprisonment and liberation, Uncas, Cora and Magua end up deceased. Cooper is proficient to discover history and the hereditary experiences of Columbus, Smith and Rowlandson which are imbedded in the American mindfulness allowin him to generate an American classic. The time of romance in American literature uses Americas exclusivity with the American wilderness as its scenery and its history as the background. The Last of the Mohicans, searches protuberant images in the American mindfulness imprisonment and Indian attacks, the disappearing noble savage and the trailblazer as a romantic idol who travels the enormous and stunning yet unforgiving land of the American frontier. The Romantic Movement was favorable to the expression of the truth confronted in the everyday lives of nineteenth century Americans. It is through the investigation of the autobiographical stories of Columbus, Smith and Rowlandson that we are able to comprehend these views of Romanticism as they congregate in Coopers historical fiction, The Last of the Mohicans, as it has arisen as a normative American romance. Coopers novel arouses the idea of the beautiful landscape that Columbus discovered, Smith as a passionate hero, Rowlandson as an incarcerated. As established in the literature of Columbus, Smith and Rowlandson, Americas groundwork was bursting with conflict. The novel mirrors Coopers inspection of those battles and the subsequent loss for both the colonizers and the Native Americans
Wednesday, May 6, 2020
Strategic finance issues Free Essays
string(159) " inventory into sales shows a possible reason for this question arising as the number of days taken to convert inventory into sales has risen in 2013 from 52\." This analysis will financially compare Santos Limiterââ¬â¢s financial performance for the year ending 31st December 2013 with the previous yearââ¬â¢s results, by way of ratio analysis. It will also benchmark the latest result with that of Woodside Petroleum for the same period using the same ratio analysis of the 2013 financial statements of each company. A copy of these ratio analysis are attached to this report as appendix 1, which contains a through time comparison for the last two years for Santos Limited ND the across time comparison with Woodside Petroleum for the most recent year. We will write a custom essay sample on Strategic finance issues or any similar topic only for you Order Now As Basely and Hancock (2013 p. 358) depict there are certain factors relevant to selecting an appropriate benchmark. Woodside Petroleum has been selected as the benchmarking company as Woodside also operates in oil and gas production, focusing operations within the Australian area. While Woodside operations are larger than that of Santos, the relative size of these companies is comparable and both follow the accounting policies required by the Corporations Act 2001 , Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting standards board. Both companies are listed on the Australian Stock Exchange (ASS) which provides comparative data for the ratios analyzed and presented in Appendix 1 with the following tables; Table 1 ââ¬â Profitability ratios Table 2 ââ¬â Efficiency ratios Table 3 ââ¬â Short-term solvency ratios Table 4 ââ¬â Long-term solvency ratios and Table 5 ââ¬â Market-based ratios A copy of Santos Limiterââ¬â¢s 2013, 2012 and Woodside petroleum ââ¬Ës 2013 Annual reports are attached to this report as Appendix 2, Appendix 3 and Appendix 4 especially, for reference to the findings and suggestions outlined in this review. One limitation of the comparison is that Santos Limited reports their financial data in Australian (ALLââ¬â¢S) dollars, while Woodside Petroleum report their financial data in American (US) dollars. This is overcome by using ratios for a majority of comparisons and converting the US dollar amounts into ASS dollars when required. 2. 0 Ratio Analysis To look at the relationship between figures presented in the financial statements, this report uses a ratio analysis technique. To fully understand the ratios developed e will look at them in context of other information provided in various reports and the overall goals of the company. From these ratios the report will then compare these against the benchmark and ultimately identify areas for improvement and, if necessary, change. 2. 1 Profitability. As we can see from Table 1 ââ¬â Profitability ratios, the net profit margin and the gross profit margin fell 1 . 74% and 4. 26% respectively in 2013. While sales increased 1 1 . 76% for the year, the gross profit margin decreased as previously stated which, was the main driver for the decrease in net profit margin for the year as the interest expense o sales remained consistent. There was a slight drop in return on assets, however asset turnover remained fairly constant, highlighting that the drop in net profit margin is due to the drop in gross profit margin and not a lower turnover of assets. The reduction in gross profit margin is due to the increase in financing costs like depreciation and depletion (up 1. 5% of sales for 2013) and third party product purchases (up 5. 6% of sales). The reduction in financing income also played a major part in pushing down profits. In comparison Woodside has a higher return on assets Han Santos due to the 16. 8% higher profit margin and they turnover assets more efficiently. Also, Santosââ¬â¢ continuing capital growth strategies in projects such as the Papua New Guiana Liquefied Natural Gas (PING LONG) and the Gladstone Liquid Natural Gas (GLEN) transformational projects which are outlined in the 2013 Annual report, are still in the developing phase, therefore not producing to generate sales until the following years. Woodside had a low commitment to capital expenditure for the same financial year and after selling off major capital in 2012 their use of debt as far less (shown as the leverage ratio in Table 4). The return on ordinary shareholderââ¬â¢s equity (ROE) ratio shows the return for the shareholders who supply equity to the business. The ROE is higher for Woodside due to their higher profit margins however, the higher financial leverage ratio in Table 4 will benefit Santosââ¬â¢ shareholders when the return on assets increases compared to the financing costs. This will happen when the above mentioned projects begin production. This is congruent with the statement in a press release by Managing Director (M. D) and Chief Executive Officer (C. E. O) Mr. David Knox on 21st of February 2014. ââ¬Å"In particular, our natural gas reserve and resource base in eastern Australia, combined with our leading infrastructure position, leaves Santos strategically well placed to meet growing market demand,â⬠. 2. 2 Efficiency ratios For the 2013 fiscal year the sales and also the number of debtors increased. The use of efficiency ratios helps determine whether the increase in debtors is due to the increase in sales alone or that it is caused by the debtors taking longer to pay. These ratios show this by providing statistical relations on how effectively Santos Limited is electing its outstanding owing money and converting the inventory into sales. From Table 2 we see that comparing the last two fiscal years for Santos Limited has made improvements in their debt collection practices. The number of days taken to collect debtors accounts has reduce from 78. 71 to 65. 53 days but is still outside Santos Limiterââ¬â¢s standard 30 days for settlement of accounts. The closing balance is showing more debtors accounts being past the 65. 3 day average for 2013 fiscal year. Comparing these figures to Santosââ¬â¢ competitor Woodside, whose debtor recovery is loser to the standard 30 days terms at 31. 63 days. An article in the Sydney Morning Herald depicts that the question has been asked whether there is a gas reservation policy by shareholders, of which Santos Chairman Mr. Board denies. The ratio analysis of days taken to turn inventory into sales shows a possi ble reason for this question arising as the number of days taken to convert inventory into sales has risen in 2013 from 52. You read "Strategic finance issues" in category "Papers" 19 to 53. 62 days. This is only a slight increase and with an expected increase in demand, this slight rise in inventory would be expected to cover n increase in demand. However, when comparing this level to the benchmark, Woodside inventory turnover is far less at 30. 46 days for a higher sales volume. 2. 3 Short-term solvency ratios While the previous ratios focus on performance of the company solvency ratios focus on assisting the company with decisions, short term and long term. Table 3 shows the short-term solvency ratios which assist in the short term decision making. The current ratio is the most basic test as to how liquid a company is. It expresses a companyââ¬â¢s ability to meet its short-term liabilities with its short-term assets. A current ratio greater than or equal to one indicates that current assets should be able to satisfy short-term obligations. A ratio less than one indicated an inability to meet short term requirements. The quick ratio calculated for 2013 compared to 2012 shows the companyââ¬â¢s ability to pay is has reduced to below the 1:1 ratio, expressing that should the company be required to pay all current debts immediately, they could not do so. Due in part to the reduction in cash levels reducing the current assets from 34. 6% to 20. 3% of net assets. Also increases in the amount of short term interest bearing borrowings increases the current liabilities from 13. 6% of net assets to 16. 9%. With the less cover to pay the increase in short-term liabilities, there is a higher financial risk. When comparing these ratios to that of Woodside, Cantonââ¬â¢s short term debt paying ability is carrying greater risks, but comparable with this benchmark. While the quick ratio decline to . 3:1 is cause for concern, the Cash flow from operations to current liabilities ratio shows that 94% of current liabilities can be covered with operational cash flow. Compare this to Woodside, which can easily cover rent liabilities with 141% of its current liabilities covered with operational cash flow. 2. 4 Long-term solvency ratios As the short-term financial risk has previously been expressed, the long term decisions can be assisted by the long- term solvency ratios expressed in Table 4. The debt to equity ratio compares the total liabilities of Santos Limited and compares it to the each dollar of shareholderââ¬â¢s equity. During 2013 Santosââ¬â¢ reliance has risen due to the increased borrowings and interest bearing loans, so for every $1 of shareholderââ¬â¢s equity there is $1. 02 worth of debt obligations. This level of debt is double than that of our benchmark, Woodside Petroleum however, the debt to total asset ratio suggests there is enough assets to cover the debt long term. This might put the company under financial risk and indicate high use of debt compared to shareholderââ¬â¢s equity and a greater financial risk long term. This increases the cost of interest in operation, effecting negatively on profitability. The interest coverage while currently is below the industry benchmark, there is sufficient coverage to ensure interest payment obligations will be met. The amount contributed to the long term room each $1 of operating cash flow has also been significantly reduced, moving further away from the benchmark company. This will increase interest costs long term however, also effecting profit margins. 2. 5 Market-based ratios The price per earnings ratio shown in Table 5 show how much the market would pay for shares of stock of the company per dollar of reported profit. About. Comaââ¬â¢s business finance reporter Rosemary Palaver suggests that the average price to earnings ratio is around 19 with Santosââ¬â¢ ratio higher at 27. 68 and the benchmark, Woodside, ratio marginally lower at 17. 49. Reasons for Santosââ¬â¢ higher than average price per earnings ratio would be due to the potential for Santos increase earnings per share in the foreseeable future and investors are trading accordingly. Other reasons for a high ratio are when companies are in a growth phase, which Santosââ¬â¢ financial statements suggest it currently is not. A high ratio also suggests that the company has financial risk which was expressed in the short-term and long-term solvency ratios. While the market is willing to pay a higher price for investment in shares per dollar Santos reports as profit, the earnings yield assists in evaluating whether returns on investment compensates the risk adequately. The yield of 3. 61% for 2013 is down on sassââ¬â¢s 4. 53% and short of Woodside 5. 72%, which is at a lower risk. Thus, Santosââ¬â¢ shares did not perform to the industry benchmark and shareholders are not getting the yield expected for their investments. Dividends are also low, reflecting the companyââ¬â¢s growth positioning for the coming few years. 3. 0 Recommendations The increase in growing demand as expected by Mr. David Knox in a release and the move into production phase of the PING project will generate extra operating ash, primarily with already obtained assets. Therefore the focus moving forward should be reducing the financing costs involved in the cost of goods sold. This will in turn increase profit margins, giving a greater return on assets due to lower interest costs, moving margins closer to that of the benchmark Woodside Petroleum. The rate at which inventory is used to generate sales should be reviewed as it is slightly behind the benchmark. One suggestion to come from these ratio findings is that debtor control needs to be tightened which in turn will improve operations cash flow. Steps have been taken during the last fiscal year to reduce the number of days to collect outstanding debtor accounts, further improvement will also increase operating cash flow which will reduce the financial risk of the company to pay its current liabilities. The inventory level should be reduced to be more comparable to Woodside and increasing the quick assets level used to repay current liabilities. Further to assist in reducing the risk associated with the companyââ¬â¢s short-term solvency would be a focus on reducing the current interest-bearing loans and borrowings. 4. Conclusion. Through the usage of ratio analysis this report has analyses Santos Limiterââ¬â¢s financial performance over the last two years and benchmark it against Australiaââ¬â¢s largest oil and natural gas producer. There are several other factors influencing position and performance like international economies, competition and major long term growth projects etc. These play a decisive role in the changes in profits, earnings yield and dividend yield. The last two years have seen Santosââ¬â¢ profits and stock performances below industry averages but this is large in part to the investment in growth opportunities, which will begin production in the near future. Some findings and recommendations have been made to improve the financial position of the company so the entity and the shareholders that have invested in it can prosper. Although the companies are in the same field, factors like subsidiary companies or having some different end product can create problem in comparing the companies. The economic condition in the different region and the accounting techniques adopted by these companies while computing ratios and financial tenement also decreases the credibility of the calculation (Charles and Patricia, 1983) 5. 0 References Charles H. Gibson Patricia A. Brush-off. 1983. Z ND Edition. Kent Publishing Company. How to cite Strategic finance issues, Papers
Monday, May 4, 2020
Financial Accounting Business and Society
Question: Discuss about the Financial Accountingfor Business and Society. Answer: Introduction The modern world constitutes of very complex business structure with the changing time and taste and preferences of the consumers. Therefore, every enterprise functioning within this economic structure tries to optimize its production and service unit by taking out the best out of all the factors of production. One of the most important factors of production is labor or the employees working in an industry. The proprietor of the business always tries to keep their employees satisfied by providing lucrative remunerations and rewards from time to time in order to get the best out of them. The idea of corporate governance was introduced within an organization in order to look after the employees and their desires. An industry even has the role of keeping their stakeholders happy and satisfied, as they are the central nervous system of an organization by providing capital and finance to the firm to keep their production process smooth. It is of great importance for any firm to keep a str ong governance and ethics structure so that the stakeholders and the employees are satisfied. In the present study it is seen that Cocoa Ltd is a large departmental store which uses a straight line method from its inception. The company has been making a record profit and it is expected that the profit would continue to last for the next two years of 2016 and 2017. The economists are in a prediction that an economic slowdown might occur in 2018 and 2019 which might lead to a fall in the profit of the firm. The manager of the firm in order to maintain a consistent profit for the next few years has asked the accountant to establish a strategy so that this profit can be maintained and the confidence of the stakeholders can even be kept towards the organization. The current paper tries to analyze and discuss the ethics, governance and stakeholders along with the change in the depreciation method that can bring about changes in the structure of the firm and keep a consistent profit within the firm. Discussion This part of the paper tries to analyze the case study with respect to the changing depreciation methods along with concentrating on the ethics and governance of the organization. The firm even tries to satisfy the interests of the firm by keeping a consistent profit and creating a reputation in the market. Cocoa Ltd is a consistent profit making departmental store, which has even estimated that it would be making a profit for the next two years as well. The economists on the other hand have predicted that there might be a economic slowdown in the year 2018 and 2019. The economic slowdown will lead to the fall in the profit of the firm which will not only hamper their market reputation but will even discourage the stakeholders to make further investments in the firm. The general manager of the firm Max Cocoa therefore, came to the accountant Andrea Andy and asked her to find a way out to reduce the profit of the next two years so that there can be a consistent profit distribution even during the years when there is an economic slowdown. Max Cocoa is asking Andrea to initiate such a process so that the stakeholders are happy with the performance of the organization and they stay with the organization even in the future (Tricker, 2015). The accountant of Cocoa Ltd, Andrea Andy was not justified with the reason shown by the general manager but she decided to do the same, as she was afraid that the firm might terminate her contract. The accountant therefore, decided to change the calculation of depreciation method from straight-line method to sum-of-years digits method (McConnell and Qi 2016). By altering the depreciation method, the firm will be able to decrease its profit, which will be essential in distributing the profit for the next two years to come. It is seen that Andrea did not disclose the changes she made in the financial statement as she thought that such a change in the accounting method might not satisfy the stakeholders and will even not give a good impression. It is seen that corporate governance and ethics play an important role in the functioning of an industry. It is seen that the ideology of ethics and governance of an industry determine the how they function and how much they value their stakeholders (Denis 2016). Ethics and governance is one the vital components of the skill base and knowledge of professional accountants in the modern world. As they are the important decision makers, it is essential that they must be experts in the regulatory regimes, governance techniques and compliance needs to make sure that effective and lawful operations and corporate behaviors are performed. With respect to Cocoa Ltd, it is seen that a proper understanding of the ethics and corporate governance structure and techniques bridges with the variety of responsibilities and roles shown in the accounting techniques. From the point of view of Andrea, the matter of ethics and governance provides the decision-making and analytical talent and knowledge to resolve and identify ethical and professional issues. Andrea does the same thing by listening to Max even when she felt that his idea was not justified. She felt that it is important for the organization to satisfy their stakeholders, as they are the core of the b usiness (Joseph, Ocasio. and McDonnell 2014). The ethics and governance and is helpful in gaining knowledge as it is vital for the matters that specialize in the functional disciplines of accounts. It is seen that with respect to the other professional accountants, Andrea is also less involved with the traditional accounting methods and is more focused with the leadership and management. Andrea like the present accountants is leaders in their field and assists support to the senior management and therefore are involved in many crucial decisions regarding the business. Therefore, it is important for Andrea to have a proper knowledge about the governance and ethics to the play the role of a person who will support the senior management of the organization (Acharya et al. 2013). This matter not only enhances the chances of awareness corporate governance but even the members in distributing their functions. It is important for Andrea to understand the matter of governance and ethics as it provides skills and knowledge that is essential for her to function effectively in the dynamic and universal business structure. This process is structured to make sure the development in a variety of professional ethics, attitudes and values among her and even in the accountants working globally (Bushee, Carter and Gerakos 2015). The subjects of governance and ethics is essential in providing skills and knowledge to the accountants so that they can work efficiently in the complex economic environment and even understand the needs of the management (Harijono and Tanewsk 2015). These subjects are framed to enhance development for a variety of professional values, ethics and attitudes in the professional accountants so that they can understand the problem of the management and concentrate on making decisions that will satisfy the stakeholders involved with the organization. (Carroll and Buchholtz 2014) On proper understanding of the matter of governance and ethics Andrea will be able to understand and explain the factors from a global perspective and the style of accounting profession and their function as an accountant. It is crucial to apply for the important duties of the accountant, in this case Andrea from the point of view of a member of the CPA in Australia. These processes even points out the importance of professional judgments and ethics and explains the crucial regulatory and governance frameworks, which is inclusive of the international viewpoint on corporate governance and their effect on the variety of stakeholders involved. These factors are even important for accountants like Andrea as it explains the estimations based on the external and stakeholders coming up from the organizational responsibilities of the governance (Larcker and Tayan2015). It even ascertains different compliance and regimes, which effects the international business environment. Governance and et hics involved in the business is essential in finding out h leadership, strategic and international problems, which has an impact on the accountants, like in this case Andrea and her profession of accounting. It even describes the role, nature and importance CSR (corporate social responsibility) which is inclusive of the sustainable development and the change in the climate (Chun et al. 2014). The module of ethics tries to discuss about the practical implementation of the ethics based on the notions of public interest and the stakeholders. It shows an overview of the ethical approach that is helpful for Andrea to solve the problems of ethical dilemmas, which in this case is the unjustified explanation of the Cocoa Ltds general manager Max. The problem is helpful in providing a detailed evaluation of the Code of Ethics for Professional Accountants and reveals the process to gain the code when addressing the ethical issues (Weber and Wasieleski 2013). The process even explains the factors that are essential to Andrea to influence the ethical decision-making and provides an outline of a proper approach of decision n-making that may be essential to make better decisions like Andrea did by changing the method of depreciation by not disclosing in the financial statement (Simmons, Shafer and Snell, 2013). The theory of governance can be well explained by examining the corporate governance framework. It includes the consideration of relationship between the stakeholders, managers and the organization. It is seen that there are vital guidance and codes on governance which Cocoa Ltd have seen in the country like Australia which are thought as a crucial role which affects the differentiation in the cultural approaches with respect to corporate governance (Chen 2013). The process tries to end with the discussion on the governance failure that have been found out it is seen that problems like this unjustified reasons of Max may arise in future and therefore recommendations for improvements can be seen. The process tries to limelight those professional accountants, as Andrea needs to have strong understanding of the concept of governance so that a successful fulfillment of the duty and obligations can be maintained (Javid and Ahmad 2014). According to the current scenario, it is important for Andrea to understand the ethical behavior with respect to the corporate governance, which requires the analysis in two levels namely the internal concerns of the corporate agency and the growth effects on the welfare of the society or the stakeholders who are connected to the organization (Carroll 2015). Recommendation It is seen that the governance is based on the premise that the managers, employees need to behave in their most effective interests to satisfy the stakeholders and the owners. There are two factors that restrict the ideology and they are the interest of the managers while going over with the stakeholders. There are instances when the agents can help themselves in various ways that can hurt the stakeholders. The second part includes the fact that the stakeholders have neither the skill nor the knowledge, which the management possesses. This can establish a dynamism where the accountants like Andrea may be forced to short termism which means behaving in ways that look to the stakeholders and that is how Andrea had behaved by not disclosing the change in the depreciation method in the financial statement. However, such process undermines the value creation over time thereby decreasing the profit of a year so that the profit can be distributed over a few years more. Variety of transpare ncy, oversight and remunerative mechanisms has grown and are still growing to enhance and restrict the agency cost. Conclusion The evaluation of the current study reveals that the organization Cocoa Ltd even being a profit for the last few years have predicted that due to economic slowdown there can be a decrease in the profit for the firm. The manager of the company asked the accountant Andrea to initiate a process that will reduce the profit for the current year so that there will be a consistent growth in the profit even during the time of economic slowdown. The idea of ethics and governance with respect to the stakeholders hold an important part as it is helpful for Andrea the accountant to understand vitality of the stakeholders. The paper even shows the ethical and governance structure, which has helped her to make financial decisions by changing the depreciation method without mentioning it in the financial statement so as to retain the impression of firm and even understanding that unjustified decision of the general manager to be effective and taking the decision same. Reference List Acharya, V.V., Gottschalg, O.F., Hahn, M. and Kehoe, C., 2013. Corporate governance and value creation: Evidence from private equity.Review of Financial Studies,26(2), pp.368-402 Bushee, B.J., Carter, M.E. and Gerakos, J., 2013. Institutional investor preferences for corporate governance mechanisms.Journal of Management Accounting Research,26(2), pp.123-149. Carroll, A.B. and Buchholtz, A.K., 2014.Business and society: Ethics, sustainability, and stakeholder management. Nelson Education. Carroll, C.E., 2015.The handbook of communication and corporate reputation(Vol. 49). John Wiley Sons. Chen, L.F., 2013. Denis Collins: Essentials of Business EthicsCreating an Organization of High Integrity and Superior Performance.Journal of Business Ethics,113(3), pp.557-559. Chun, J.S., Shin, Y., Choi, J.N. and Kim, M.S., 2013. How does corporate ethics contribute to firm financial performance? The mediating role of collective organizational commitment and organizational citizenship behavior.Journal of Management,39(4), pp.853-877. Denis, D., 2016. Corporate Governance and the Goal of the Firm: In Defense of Shareholder Wealth Maximization.Financial Review,51(4), pp.467-480. Harijono, H. and Tanewski, G., 2015. 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Effects of a business ethics elective on Hong Kong undergraduates attitudes toward corporate ethics and social responsibility.Business Society,52(4), pp.558-591. Tricker, B., 2015.Corporate governance: Principles, policies, and practices. Oxford University Press, USA. Weber, J. and Wasieleski, D.M., 2013. Corporate ethics and compliance programs: A report, analysis and critique.Journal of Business Ethics,112(4), pp.609-626.
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