Reasons for Liquidation of Companies: Accounting Analysis

Accounting
1/11/2019

1
Executive summary
Liquidation is the procedure through which the company takes the decision to finish their
business operations and they dispense the assets of the business to people who are claimants.
This has been found that most of the companies are winding up their business operations because
they are not able to meet the obligations. This report is prepared on the companies who go into
liquidations with the same reason and the event are supported with the help of the APSE 110
code of ethics for Professional Accountants.

2
Contents
Introduction......................................................................................................................................3
Reason for the liquidation of companies.........................................................................................4
Aluminium Boats Australia.........................................................................................................4
HIH Insurance..............................................................................................................................5
Stella Homes Australia................................................................................................................6
Liabilities a major factor contributing to the liquidation of companies..........................................7
Conclusion and recommendations...................................................................................................8
References........................................................................................................................................9

3
Introduction
The aim of the paper is to talks about the company who wounded up their business operations
which majorly include Aluminium Boats Australia, HIH Insurance and Stella Homes. These
companies have gone into liquidation because they were not able to fulfil the liabilities and
obligations. The paper includes the actions that managed to the insolvency of the business with
the support of APES 110 Code of Ethics for Professional Accountants. Moreover, it includes the
corporate governance issues that contribute to the collapse of every company. Further, this also
shows that liabilities are a contributing factor that led to their downfall.