To demonstrate that you understand the three models of management ethics – moral, immoral, and amoral – give an example from your personal experience of each type. Do you agree that amorality is a serious problem? Explain.
> Despite Australia adopting IFRS issued by the IASB, the AASB has not adopted the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs). Instead, the AASB has introduced a differential reporting framework, referred
> The most recent financial statements for the Brisbane City Council are available at www.brisbane.qld.gov.au. Referring to these statements, address the following questions. (a) Discuss why the Council is preparing GPFS. (b) Summarise the measurement basi
> The following article extract refers to the ‘goodwill glob’ and implies that it produces data that lack serviceability. Clarke and Dean (2011, p. 63) outline that there will come a time when challenges are made to the data used in company financial state
> In a significant accounting-related court case, the Australian Securities and Investments Commission (ASIC) took the directors of Centro to court over the misclassification of liabilities. On 27 June 2011, the Federal Court found the directors had breach
> During the global financial crisis in July 2008, National Australia Bank (NAB) was exposed to collateralised debt obligations (CDO). Consequently, NAB wrote down $1 billion associated with these risky instruments, with its share price plummeting and shar
> There is an IFRS on fair value measurement. The objective of this standard is to define fair value and specify the framework for measuring fair value. Identify the characteristics of assets and liabilities that should be considered when determining fair
> As a trainee accountant, you have been asked to determine the monetary value that should be assigned to the inventory of sporting equipment on hand as at the end of the financial year for Outdoor Adventures Ltd. You are currently looking at the inventory
> Koala Furniture Ltd, an office furniture retailer and wholesaler, carries a particular brand of office chair. During the year ended 30 June, the following purchases occurred. August …………………………………………… 50 chairs at $45 October ………………………………………… 60 chairs at
> Access the latest financial report for Maybank Banking Corporation on its corporate website and answer the following questions. (a) The financial institution is not following the current/non-current asset and liability classification. On what basis do yo
> When corporations found their traditional funding revenues drying up during the global financial crisis, one solution adopted by banks was to issue convertible bonds. Convertible bonds are often referred to as ‘hybrid financing’ as they have the characte
> Steam Kleen Ltd, a carpet steam-cleaning business, needs to acquire new machinery. The accountant has suggested that the entity should lease the machinery rather than take out a loan to purchase it. When the owner inquired as to why this would be prefera
> Samsung considers innovation to be crucial to its business. It values speed and exploration of new markets in order to remain competitive in a market with a constant influx of new technologies. Samsung has outlined that ‘[t]hrough the interplay of creati
> EY’s analysis of the accounts of 16 European utilities reveals that almost €17.7 billion (US$23.4 billion) was written off statements of financial position between 2010 and 2011. A large proportion (58 per cent) of this lost value was concentrated among
> When Microsoft acquired Skype, it agreed to pay US$8.5 billion. This was the most expensive acquisition Microsoft had made at that point, but was viewed as an important acquisition to compete with key business rivals. It was recorded at the time of acqui
> Simply Better Pty Ltd has just acquired the Cutie Pie business. The fair value of Cutie Pie’s net assets as at the date of acquisition is $1 855 000. Simply Better Pty Ltd has agreed to pay the owners of Cutie Pie $1 000 000 in cash and give them 100 000
> The Commonwealth Bank of Australia measures its property assets (land and buildings) on a fair value measurement basis using independent market valuations. As at 30 June 2018, the land and buildings were valued in the statement of financial position at $
> Australian Agricultural Company Ltd was formed with a grant of one million acres and the stated aim of cultivating and improving the wastelands of the colony of New South Wales. Today the company is a cattle producer with a significant position in the Au
> Using the company that you selected in question 5.38, read the independent auditor’s report. Given the estimations and assumptions involved in preparing financial statements, discuss what the auditor’s report is stating about the ‘accuracy’ of the financ
> Flight Centre Ltd’s 2017 financial report notes that PPE is carried at cost less accumulated depreciation and any impairment charges. The notes to the accounts (pp. 48 and 81) note a gain on the sale of the NZ Head Office in 2016 of $6 264 000. The head
> The following table shows the balance of an entity’s trade receivables for each of the past four years. As the table indicates, the trade receivables have increased in absolute value each year. Discuss why entities are required to disc
> Select an Australian Securities Exchange (ASX) listed company and visit its website to access the latest annual report. From the company’s statement of financial position, identify the: (a) Company’s total assets (b) Percentage of total assets that are:
> As an investor in the share market, you use the financial statements to assess the financial condition of entities. Discuss whether you would find it more useful to have items of PPE valued at historical cost or fair value.
> Golden Pineapples Pty Ltd had the following assets and liabilities at financial year end in 2019 and 2020. Required (a) What is the balance of retained earnings as at the end of the two financial years? (b) If the company reported profit after tax of $2
> Seek Ltd discloses areas involving critical accounting estimates and assumptions in the relevant notes to its financial statements. Locate the most recent annual report for Seek Ltd and identify the accounting areas that management believe have the great
> In calculating the provision for employee benefits, JB Hi-Fi Ltd includes the value attributable to employee long service leave entitlements. Explain how these entitlements differ from annual leave and sick leave entitlements. Given that most employment
> You have a friend who is considering purchasing shares in Meridian Ltd. The shares are currently trading on the securities exchange at $3.58 each. The entity’s financial statements suggest that its net assets are $250 000 and there are 150 000 shares on
> Find the University of NSW (UNSW) asset revaluation policy on the internet. Summarise the measurement of UNSW’s various asset classes. Discuss the advantages and disadvantages of the revaluation and cost measurement systems.
> On 8 November 2011, the Australian Senate passed the ‘carbon tax legislation’ in relation to the government’s clean energy proposal, including a mechanism for pricing carbon. The legislation was effective from 1 July 2012. Under the legislation approxima
> The accountant of a private secondary college, St Lucia, is preparing the school’s financial statements. Discuss the justification for the school preparing SPFS rather than GPFS.
> Using the revised Conceptual Framework definition and recognition criteria, discuss whether each of the following items can be recorded as assets. (a) Trade receivables (b) Investments in shares (c) Inventory (d) Research expenditure
> A friend who owns a small entity trading as Fairies Galore knows that you are studying accounting and asks you to prepare the entity’s classified statement of financial position in narrative format as at 30 June. The friend has provided you with the foll
> For each of the transactions identified, analyse how the asset, liability and/or equity accounts increase, decrease or remain unchanged. (Remember the accounting equation.) a. Obtained a loan to purchase equipment for $55 000. b. The owners took $400
> Knowing that you have some accounting experience, a friend has sought your advice regarding a business that she intends purchasing. The statement of financial position for the business shows total assets of $180 000 and liabilities of $90 000. The sellin
> Chic Frames Ltd was acquired by Specsavers for $8 million. The fair value of the net assets acquired by Specsavers was assessed at $5 million. Prepare the double-entry transaction that would keep the accounting equation in balance.
> One of Google’s largest acquisitions was Motorola Mobility for $12.5 billion in 2011. Google subsequently sold Motorola to Chinese giant PC producer Lenovo for $2.9 billion. Required Explain how the goodwill associated with Lenovo’s acquisition would be
> Entities spend millions of dollars on marketing and advertising intended to promote and build brands, develop customers and sell services or products. Consider a new hotel being launched. Extensive marketing spend is required to create an awareness of th
> Typical classifications of liabilities in the statement of financial position include: payables; borrowings; deferred revenue; deferred tax liabilities; provisions and other liabilities. The equity classifications for large entities are: share capital (c
> Qantas Group has been ranked amongst the top six airlines of global carriers when it comes to the availability of frequent flyer reward seats based on the ninth annual CarTrawler Reward Seat Availability Survey, which attempts to book award redemptions o
> Identify whether the following liabilities would be classified as current or non-current as at the end of the reporting period, justifying your classification decision. (a) Provision for employee annual leave (b) Long-term bank loan (c) Payroll taxes pay
> Identify whether the following assets would be classified as current or non-current as at the end of the reporting period, justifying your classification decision. (a) Prepaid expenses (b) Intangible assets (c) Plant and equipment (d) Accounts receivable
> Solve for the missing financial numbers as they would appear in the statement of financial position. Non- Current current assets assets $35 000 $46000 d. 84 000 159 000 j. 46 941 g. 24 000 m. Total Current assets liabilities a. e. $295 000 k. 129 127
> From the following account balances of Graceview as at 31 December 2019, prepare a statement of financial position in both the T-format and the narrative classified format. Note: You will need to determine the balance of the retained earnings. Cash at ba
> From the following account balances of Frosty Pty Ltd as at 30 June 2019, prepare a statement of financial position in both the T-format and the narrative classified format. Cash at bank ………………………………………………………… $ 4 000 Accounts receivable (net) …………………………
> JB Hi-Fi Ltd has a legal obligation to prepare and lodge financial statements. Access the notes to JB Hi-Fi Ltd’s most recent financial statements and identify the rules and regulations that govern the basis for the preparation of the financial statement
> In discussion of business and society, why is there a tendency to focus on large-sized rather than small- or medium-sized firms? Have the corporate ethics scandals of the past decade affected small- and medium-sized firms? If so, in what ways have these
> From your personal experience, give two examples of ethical dilemmas you have experienced as a member of an organization.
> From your personal experience, give an example of a situation you have faced that would require one of the six elements of moral judgment. Which of these six elements are most important and why?
> Compare your motivations to behave ethically with those listed in Figure 7-14. Do the reasons given in that figure agree with your personal assessment? Discuss the similarities and differences between Figure 7-14 and your personal assessment. Figure 7-1
> Give examples from your personal experience of Kohlberg’s Levels 1, 2, and 3. If you do not think you have ever gotten to Level 3, give an example of what it might be like.
> Give a definition of ethical business behavior, explain the components involved in making ethical decisions, and give an example from your personal experience of the sources of ethical norms that affect you while making these determinations.
> Do research on the impact of Hurricane Sandy on business organizations. What have been successful and unsuccessful examples of crisis management that have come out of this research? Is terrorism a likely crisis for which business may prepare? How does pr
> Identify a crisis that has occurred in your life or in the life of someone you know, and briefly explain it in terms of the four crisis stages: prodromal, acute, chronic, and resolution.
> Identify one example, other than those listed in Figure 6-3, of each of the leading force categories: events, authorities/advocates, literature, organizations, and political jurisdictions. Figure 6-3: Leading Forces Events Authorities/Advocates Lit
> Is society intoxicated with technology? Does this pose special problems for business with respect to the ethics of technology? Will such intoxication blind people to ethical considerations in business?
> Following the approach presented in Figure 6-1, identify a new issue category not listed in Figure 6-1. Identify several examples of “crises” that have occurred in recent years under each issue category. Figure 6-1:
> Which of the major stages in the issue management process do you think is the most important? Why?
> Describe the corporate public affairs function today. What are the three opportunities for PA executives in the future?
> Why are integrated reports increasing in popularity?
> What is social entrepreneurship and how is it related to the bottom of the pyramid (BOP)?
> What is the difference between integrated reporting and a social performance report?
> Identify the steps involved in the strategic management process.
> Which of the four strategy levels is most concerned with social, ethical., or public issues? Discuss the characteristics of this level.
> Discuss the pros and cons of the shareholder-primacy and director-primacy models of corporate governance. Which do you prefer and why?
> Outline the major suggestions that have been set forth for improving corporate governance. In your opinion, which suggestions are the most important? Why?
> Are there any benefits or negative side effects of technology in business that have not been mentioned in this chapter? Discuss.
> Explain how governance failures such as Enron and the global financial crisis could happen. How might they be avoided?
> What are the major criticisms of boards of directors? Which single criticism do you find to be the most important? Why?
> Explain the evolution of corporate governance. What problems developed? What are the current trends?
> Is the stakeholder corporation a realistic model for business firms? Will stakeholder corporations become more prevalent in the 21st century? Why or why not?
> What are the three levels of stakeholder engagement that a company might use? Explain each.
> What are the five key questions that must be answered for stakeholder management to be successful?
> Differentiate between primary and secondary social and nonsocial stakeholders in a business situation. Give examples of each.
> Explain in your own words the differences between the production, managerial, and stakeholder views of the firm. Which view is best and why?
> Explain the concepts of stake and stakeholder from your perspective as an individual. What kinds of stakes and stakeholders do you have? Discuss.
> Compare and contrast the socially oriented concepts: CSR, corporate citizenship, sustainability, creating shared value, and conscious capitalism. Do these represent different forms of the business and society relationship or do they represent how and why
> Which three of the concepts under the field of behavioral ethics appear to be the most powerful? Explain why and give examples.
> Has the concept of diversity supplanted the concept of affirmative action in leading companies today? Why or why not?
> Do you agree with the Genetic Nondiscrimination Act? Do companies have a right to know and use genetic information about employees? Why or why not?
> Do you think racial inequality is caused by racism, favoritism, or both? Explain your answer.
> How has the Americans with Disabilities Act (ADA) evolved since its inception?
> Give two different definitions of discrimination, and provide an example of each.
> Identify the major federal discrimination laws and indicate what they prohibit. Which agency is primarily responsible for enforcing these laws?
> Identify the privacy, health, and due-process ramifications of violence in the workplace.
> Which two of the four guidelines on the issue of privacy presented in this chapter do you think are the most important? Why?
> How has the World Trade Center tragedy affected workplace privacy? What are the long-term implications of that?
> How has technology affected workplace privacy? What are the implications for the social contract between firms and their employees?
> Identify and prioritize the best practices for improving the organization’s ethical climate. What are the strengths and weaknesses of each?
> What are the two major arguments for and against integrity (honesty) testing by employers? Under what circumstances could management most legitimately argue that integrity testing is necessary?
> Enumerate the strengths and weaknesses of the polygraph as a management tool for decision making. What polygraph uses are legitimate? What uses of the polygraph are illegitimate?
> In your own words, describe what privacy means and what privacy protection companies should give employees.
> What other steps can management take to be responsive to potential whistle-blowing situations?
> What is your assessment of the value of the False Claims Act? What is your assessment of the value of the whistle-blower protections under the Sarbanes-Oxley Act?
> How do you feel about whistle-blowing now that you have read about it? Are you now more sympathetic or less sympathetic to whistle-blowers? Explain.
> If you could choose only one, which form of alternative dispute resolution would be your choice as the most effective approach to employee due process? Explain.
> In your own words, explain the right to due process. What are some of the major ways management is attempting to ensure due process in the workplace?
> Explain the employment-at-will doctrine, and describe how it is being eroded. Do you think its existence is leading to a healthy or an unhealthy employment environment in the United States? Justify your reasoning.
> Rank the various changes that are occurring in the workplace in terms of their importance to the growth of the employee rights movement. Briefly explain your ranking.
> An ongoing debate concerns whether business ethics can and should be taught in business schools. Do you think ethics can be taught in B-school? Substantiate your point with reasons. Can top managers and board members be taught business ethics?
> In your opinion, why does a business have a responsibility to employees and community stakeholders in a business- or plant-closing decision?
> Identify and discuss briefly what you think are the major trade-offs that firms face as they think about offshoring and reshoring. When substantial layoffs are involved, what are firms’ responsibilities to their employees and their communities?
