Accounting And Governance | Assessment 1

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

1
ACCOUNTING AND GOVERNANCE
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Part A.........................................................................................................................................3
Answer to question 1..................................................................................................................3
Answer to question 2..................................................................................................................4
Part B..........................................................................................................................................4
Answer to question 1..................................................................................................................4
Answer to question 2..................................................................................................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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ACCOUNTING AND GOVERNANCE
Introduction
The report presents a discussion on the views of Sharon Shady, who is the Managing
Director of Galore Ltd.’s. In the first part of the report, all the factors that are to be
considered when estimating the yearly allowance for doubtful debts are discussed in relation
to the impact of Galore Ltd.'s financial statement. In the second part, the decision which is
taken by the Managing Director of determining the growth rate to 5% instead of 10 % is
evaluated with reviewing all the accounting policies and standards which the organization has
followed. Lastly, whether the decision taken by the director is influencing the stakeholders
are explained.
Discussion
Part A
Answer to question 1
The allowance of the doubtful debts is based on certain factors which are explained
here. This allowance has to happen on the same date as the sale, along with it will be
considered as bad debt expenses. This allowance is taken into account those organizations
who offered their products to the consumers in credit. As the allowance is received in the
same period, it is difficult for the organization to know the number of receivables to be paid
(Kulikova, Garyncev and Goshunova 2015). Thus, the Generally Accepted Accounting
Principles(GAAP) is used to resolve the problem which is happened in adjusting the
accounts.