Accounting And Governance Accounting Report 2022

Running head: ACCOUNTING AND GOVERNANCE
ACCOUNTING AND GOVERNANCE
Name of the Student
Name of the University
Author Note

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ACCOUNTING AND GOVERNANCE
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Part A.........................................................................................................................................2
Answer to question 1..................................................................................................................2
Answer to question 2..................................................................................................................3
Part B..........................................................................................................................................3
Answer to question 1..................................................................................................................3
Answer to question 2..................................................................................................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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ACCOUNTING AND GOVERNANCE
Introduction
Shadon Shady is the Managing Director of Galore Ltd. and this report represents a
discussion of his views. The first part of the report consists of all the factors that are to be
considered when the allowance of doubtful debts is calculated yearly. These factors are
discussed in the report that can affect the financial statements of Galore Ltd. The second part
of the report includes the discussion that is taken by the management of the company to
determine the growth rate of whether it should be a 5% or 10% after reviewing all the
accounting policies and standards that are followed by the organization. In the last part, it is
explained that are the decisions taken by the director influencing the stakeholders or not.
Discussion
Part A
Answer to question 1
The allowances of doubtful debts in a company are based on certain factors and the
factors are explained. This type of allowance takes place on the same date as the sale and it is
also considered as a bad debt expense. Only those organizations record such an account that
offers their products on credit to their customers (Brink 2019). Sometimes it is difficult for
the organization to maintain the number of receivables that are to be paid since the
allowances belong to the same accounting year. Therefore, to come to a proper conclusion
Generally Accepted Accounting Standards are used to adjust the accounts whose figures don't
match.