Business Report on various problems and

challenge raised in Outback Meat (Case 2)

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Case Number – 2

Instructor Name – Dr. Zubaidah ISMAIL

Student Name – Ankit Bhardwaj

Student ID – 10329030

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Contents
Introduction...........................................................................................................................................4
Analysis of Items....................................................................................................................................5
Conclusion...........................................................................................................................................6
References..........................................................................................................................................6
Part 2.....................................................................................................................................................7
Appendix...............................................................................................................................................8

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Introduction

a. The Motivation is to boost the revenue and by reducing the liabilities of the
company and keeping the graph of the growth on a high spree.
The framework states that the information concerning how proficiently and
adequately the detailing substance's administration has released its
obligations to utilize the element's monetary assets assists clients with
surveying the executives' stewardship of those assets. Such data or
information is additionally helpful for anticipating how proficiently and
adequately the executives will utilize. the element's financial assets in ongoing
periods.

b. The motivation for extending the close of the current financial year is the
increase revenue and ultimately increase the growth of the current financial
year.
According to the Conceptional framework the financial statements are
prepared for a particular period, which is called the reporting period.

c. The motivation here is to increase the revenue and saves money for the
outback meats by including fines and extra cost as write – off.
A Member in Business or a prompt or close relative might be offered an
inducement, for example, favours, neighbourliness, particular treatment, and
unseemly requests to fellowship or faithfulness. Then again, a member might
encounter strain to offer inducements to subordinate the judgment of another
individual or association, impact a dynamic interaction or acquire classified
data.

d. The Motivation here is to increase the sales and ultimately the revenue.
A Member in Business or a prompt or close relative might be offered an
inducement, for example, favours, endowments, particular treatment, and
unseemly requests to fellowship or faithfulness. Then again, a member might
encounter strain to offer inducements to subordinate the judgment of another
individual or association, impact a dynamic interaction or acquire classified
data.

e. The Motivation here is to reduce the liabilities and increase the profit.
A Member in Business is needed to get ready or present data decently,
genuinely, and as per applicable Professional Standards so the data will be
perceived in its unique situation. Dangers to the Member's capacity to do as
such may emerge from pressure (terrorizing or personal circumstance) to
become related with deluding data. Where the dangers have been assessed,
shields, for example, those talked about

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 f. The motivation here is increase the profit and hence increase the revenue of
the Outback meat.
The code expresses that Preparing or introducing information may require the
activity of discretion in making proficient decisions. The Member will not
exercise such attentiveness fully intent on misdirecting others or impacting
legally binding or administrative results improperly.

Analysis of Items

a. As the entity is on a growth spree here on the past three years and has
just in the current financial year incurred slightly lower growth due to covid
restriction show.
If there no maintenance work has been done in December, then there is
no transaction regarding maintenance to record. The responsibility for
ensuring that packaging equipment is well maintained should be
communicated to the relevant department. Although there can be some
serious consequences for the outback meat, in case of sudden equipment
breakdown the productivity of company can reduce eventually reducing
the revenue.

b. The dates of the fiscal year-end shouldn’t change. It is an illegal thing to

do. The consequences of which can have outback meat on the watch list
and tarnish its reputation. The framework clearly states the financial
statement should be prepared for reporting period and should not be
extended. Better financial planning can help the outback maintaining the
timeline.

c. Providing false expenses and other false information can land up the
outback in the watchlist and even fined, ultimately tarnishing its reputation.
The code clearly states that members should apply professional discretion
and shall not apply this discretion in an inappropriate and misleading way.

d. The consequences of double bonus to the sales team can motivate them
to give extra efforts and diligence and ultimately improving the sales figure.
In many organizations, sales are heavily concentrated in the final weeks of
the fiscal year-end. If the double bonus is approved by the division
marketing manager, the division controller can do little more than observe
the extra bonus paid in December. The code state that the inducement
shouldn’t be offered while conducting professional activities. Although
providing bonus has a potential to be described as unethical. Its not a best
practice and should be avoided as it can land the organization the
watchlist.

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 e. facilitating falsification of the accounting records can have serious
consequences and get the outback on the watchlist and even get fined
and as its in non-compliance with laws and regulations. The framework
explicitly states the member should present the information in fair and
honest way. Act of this nature and falsification of the information should be
prohibited by the outback.

f. The consequences of this can be loss of trust in the organisation and

increased level scrutiny by regulators. The code clearly states that
members should apply professional discretion and shall not apply this
discretion in an inappropriate and misleading way.

Conclusion

In challenging times of the global pandemic, outback meat is still having a growth
rate of 8%, which is not a depraved figure in relative to the general business
environment. The company should invest itself in creating good reputation and
should abhorrently avoid any unethical and unscrupulous activity as it can have long
lasting negative implications for the outback.

References

Accounting Professional & Ethical Standards Board Limited. (2012). APES GN 40

Ethical Conflicts in the Workplace - Considerations for Members in Business.
Accounting Professional & Ethical Standards Board Limited. Retrieved from
https://apesb.org.au/uploads/standards/guidance_notes/40c1.pdf
Accounting Professional & Ethical Standards Board Limited. (2018). APES 110
Code of Ethics for Professional. Accounting Professional & Ethical Standards
Board Limited. Retrieved from
https://apesb.org.au/wp-content/uploads/2020/09/APES_110_Restructured_C
ode_Nov_2018.pdf
Australian Accounting Standards Board. (2019). Conceptual Framework for
Financial. Australian Accounting Standards Board. Retrieved from
https://www.aasb.gov.au/admin/file/content105/c9/Conceptual_Framework_05
-19.pdf
ERIN L. HAMILTON, R. M. (2018, November 1). THE ETHICALITY OF EARNINGS
MANAGEMENT. Strategic Finance. Retrieved from
https://sfmagazine.com/post-entry/november-2018-the-ethicality-of-earnings-
management/

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Part 2

Company Revenue Inventory policy Policy

Name & nature recognition Total inventory Including
of business policy and amount reported depreciation
reported policy on Property,
plant & equipment
and
intangible assets
(if
any) and net
carrying
value of these 2
categories of
noncurrent assets
1. Regis Revenue Inventory policy Depreciation policy
Healthcare recognition are on Property,
Ltd. policy - Revenue is recorded at the plant & equipment
recognised over lower of cost and policy- a straight-
time as services net realisable line basis.
are provided. value. Amount- $339,342
Amount- $4,367
Intangible assets
policy-
Amount- 64,343
2. Coles Revenue from the Inventories plant & equipment
Group Ltd. sale of goods is comprise goods policy- a straight-
recognised when held for resale and line basis.
control of the are valued at the Amount- $3313
goods has lower of cost and Millions
transferred to the net realisable
customer. For value. Intangible assets
goods purchased Amount - $ 4,367 policy- software’s
in-store, control of Millions are amortized
the goods straight-line basis
transfers to the and other
customer at the Intangibles are

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 point of sale. For tested annually for
goods impairment.
purchased online,
control of the
goods transfers to
the customer upon
delivery, or when
collected by the
customer.
Amount -
38.6billion

Appendix

Below are the Snapshots from the Annual report of the Two chosen companies for
part 2 of the Assignment:
1. Snapshots from the Regis care Annual Report

Ref: Regis care Annual report,

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2. Snapshots from the Coles Annual report.

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